Analyst: Overseas investors seem to be inclined to reduce their dollar allocation

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MarsBit
05-30
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Mars Finance News, on May 30, BlueBay's Chief Investment Officer Mark Dowding noted in a report that the 30-year U.S. Treasury bond is currently finding buying support near a yield level of 5.0%. Dowding stated: However, we are concerned that as U.S. debt continues to grow, most overseas investors seem inclined to reduce their allocation to U.S. assets and the U.S. dollar. He noted that as debt levels rise, new supply will depend on U.S. domestic investors to absorb it. Dowding added that the U.S. Treasury yield curve remains relatively flat and may experience a steepening trend in the coming weeks (i.e., the spread between short-term and long-term bond yields widens). (Jinshi)

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