Much of this can be attributed to the large drop in U.S. Treasury prices.
However, it’s all so a general flight away from U.S. Treasury holdings as we have seen in China.
There are a lot of moving parts here.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) September 12, 2023
Without the same political incentive to buy US Treasury bonds that they have had in the past, the Saudis are presumably concerned that US deficit spending and accompanying inflationary policy will reduce the chance that they can realize positive real returns holding UST bonds.
— David Sommers (@dgsommersmkts) September 12, 2023
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