- Flows into USD securities have historically been influenced by global risk sentiment and yield levels—how will they be affected by potential Fed tightening and the crisis in Ukraine?
- Historically, foreign portfolio investment in U.S. Treasuries has largely been driven by the level of U.S. rates, with flows from countries such as Japan, Australia and Italy proportional to the yield pickup available in U.S. sovereigns.
- The surge in commodities prices as a byproduct of Russian sanctions has downside risks for growth and immediate upside risks for inflation, leaving central banks globally to precariously proceed with monetary policy.
For further details see:
Foreign Investor Flows Into The U.S.