Foreign inflows into US treasuries hit seven-year-peak in 2019



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Foreign inflows into US treasuries hit seven-year-peak in 2019

On Tuesday, the 18th of February 2020, the US Treasury Department data had shown that the amount of foreign inflows into the US Treasuries through purchases of US Treasury bonds had spiked to a more than seven-year peak, as there had been a meteoric surge in interests for the US high-yielding US Government debts among investors over the narratives of a gloomier BoJ outlook alongside a negative depository interest rate in the Eurozone.

Aside from that, according to Tuesday’s (February 18th) US foreign inflow data, released by the office of US Treasury Secretary Steven Mnuchin, had also added that the December 2019 alone had contributed to a steep rise in US Government bond purchase, while the US Treasury had hit a $6.696 trillion level, up about $425 billion compared to the same time a year earlier, a level never seen since 2012 when the global money markets were still recovering from a fatal economic depression of 2007-2009.

Meanwhile, as eurozone investors appeared to be banking on US Treasury bonds instead China’s internationally traded government bonds despite a multi-year low interest rate, a whooping upsum of $100 billion was contributed by the eurozone investors, while Japanese investors had purchases $115 billion worth of US Treasuries last year.

However, the US benchmark 10-yr Treasury yield had wrapped up last year at an interest rate of 1.91 per cent, while the China’s 10-yr Treasury yield had winded down 2019 at 3.16 per cent.