Strong recovery in US treasury purchases is ‘unlikely’ – paper
Central banks’ demand for US government bonds has ‘plateaued’ as reserve managers diversify
Private foreign demand from US-allied countries has replaced central banks’ demand for US treasury securities, new research from the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution argues.
In their paper published on August 12, Anusha Chari and Gian Maria Milesi-Ferretti examine overall foreign demand for US assets, with a specific focus on US treasuries.
They find that, absent a “renewed period of rapid reserve accumulation at a pace exceeding global GDP or US public
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