Institute of International Finance November 18, 2021

Global Macro Views: Are US Treasuries still a Risk Hedge?

Robin Brooks · · Jonathan Pingle

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About this work

The safe haven role of US Treasuries depends partly on the durability of foreign demand. Robin Brooks, Jonathan Fortun and Jonathan Pingle argue in November 2021 that dollar strength reduced foreign central banks’ need to intervene and accumulate Treasury holdings. Persistently weak inflows could leave the market more exposed to global shocks and require renewed Federal Reserve support.

Abstract

The safe haven role of US Treasuries depends partly on the durability of foreign demand. Robin Brooks, Jonathan Fortun and Jonathan Pingle argue in November 2021 that dollar strength reduced foreign central banks’ need to intervene and accumulate Treasury holdings. Persistently weak inflows could leave the market more exposed to global shocks and require renewed Federal Reserve support.

Cite this work

Robin Brooks, Jonathan Fortun, Jonathan Pingle (2021). Global Macro Views: Are US Treasuries still a Risk Hedge?. Institute of International Finance.