Confidence in the U.S. Treasury market takes a hit globally

Jon Sindreu highlights that foreign investors are losing interest in U.S. Treasury bonds as they find better returns in local bonds. The U.S. Yield curve remains flat compared to rising rates in regions like the eurozone.

Sindreu notes that higher hedging costs have made U.S. Treasuries less attractive for international investors, particularly from Japan, where they face unfavorable yield trade-offs.

Concerns about the U.S. Dollar’s stability and rising protection costs are diminishing the appeal of American debt. Sindreu posits that institutional investors must now hedge against potential currency losses.