Goldman Sachs: There are no obvious signs of a significant sell-off in U.S. Treasuries, but they are expected to face gradual adjustments

ChainCatcher news, Goldman Sachs interest rate strategists noted in a report that there have been no significant signs in recent weeks indicating that foreign investors are massively selling U.S. Treasuries, but global portfolios are expected to gradually adjust.

The strategists stated, "The reset of the risk premium on U.S. Treasuries and the weakening of the dollar are adjustments needed to compensate for the deterioration of risk portfolios and incentivize future demand from global investors." They pointed out that in an environment of increasing supply of safe assets, U.S. Treasuries may face pressure due to the gradual adjustment of global portfolios, "but the scale of foreign holdings combined with specific U.S. risk factors at least reinforces our view that the adjustment of relative risk premiums should have a certain degree of persistence."