Effective April 2, 2025, all screeners previously provided by Sivadata Pty Ltd have been transferred to Kalkine Pty Ltd, a related entity of Sivadata Pty Ltd. You can access these screeners via the link https://kalkine.com.au/screeners.
Economy

Large U.S. Treasury holders in Asia saying "no" to "sell America" trade - Yardeni

Investing | Wed, May 21 2025 09:45 PM AEST

1695367561_650d4189d32c8_1692951951_64e8658fe70f4_breaking_news_600.png
Image Source: Sivastatz

Investing.com - Most of the biggest holders of U.S. Treasuries in Asia are saying "no" to the "sell America" trade, according to Yardeni Research.

Questions have recently swirled around the persistence of this trade, which has featured many investors offloading government bonds and a weakening in the U.S. dollar.

In Asia, home to many of the largest central bank holders of U.S. Treasuries, a recent decision by Moody’s to slash its rating of U.S. credit has policymakers and investors "in a whirl", Yardeni said in a note to clients.

This week, the yield on the 30-year Treasury reached above levels notched after U.S. President Donald Trump first announced his sweeping tariff agenda in early April.

But Yardeni suggested that, aside from this jump in 30-year yields, the Moody’s downgrade did not seem to trigger global investors to "sell America".

Notably, a warning from Moody’s around the impact of a $36.2 trillion U.S. debt pile was "news to exactly no one" in Asia, nor was the ratings agency’s flagging of elevated U.S. interest payment ratios, Yardeni said.

"The Moody’s call is backwards-looking," Yardeni argued, adding that a "feel-good effect" over indications that Trump’s tariff push will not be as aggressive as initially feared has helped to "drown out" worries over an ongoing budget bill debate in Washington.

On Tuesday, Trump went to Capitol Hill to persuade Republican lawmakers to pass his "big, beautiful" bill, which some analysts have estimated could heap an extra $3 trillion to $5 trillion onto the U.S. government’s $36.2 trillion debt load. Large tax cuts proposed by Trump could also add to the supply of U.S. Treasury debt, exerting pressure on the bond market, analysts have said.

Still, Asian investors are buoyed by signs of resilience in the U.S. labor market, while a "short supply" of global currency alternatives to the U.S. dollar has supported demand for the greenback, Yardeni said.

This article first appeared in Investing.com

World News

Entergy Helping Customers Stay Cool and Save Money With Energy Efficiency Tips and Resources

Easy tips to boost home energy efficiency and lower electric bill costsAs summer approaches and temperatures continue to rise, air ...

3BL | Tue, Jun 24 2025 01:35 AM AEST

Read More
World News

GP Cellulose Merges Innovation With Responsibility - Utilizing Advanced Tools To Benefit Forests

GP Cellulose is merging innovation with responsibility. By utilizing advanced tools like Georgia Pacific's proprietary ForestLogic™ and cutting-edge remote sensing ...

3BL | Tue, Jun 24 2025 01:35 AM AEST

Read More
Market Updates

Alcoa Schedules Second Quarter 2025 Earnings Release and Conference Call

PITTSBURGH--(BUSINESS WIRE)--Alcoa Corporation (NYSE: AA; ASX: AAI) plans to announce its second quarter 2025 financial results on Wednesday, July 16, 2025, ...

Business Wire | Tue, Jun 24 2025 01:30 AM AEST

Read More
World News

From Refugee to Farmer: Uganda’s Model for Empowering Displaced Communities

Published by Action Against Hunger. A Single Mother’s Journey from Hardship to Entrepreneurship When you step into ...

3BL | Tue, Jun 24 2025 01:15 AM AEST

Read More
World News

Curiosity Cube Debuts in Africa and Expands Global STEM Mission

After captivating students across North America and Europe with access to hands-on science, the Curiosity Cube from the Life Science ...

3BL | Tue, Jun 24 2025 12:30 AM AEST

Read More