Things are getting ugly in the global liquidity environment.
1) The U.S. Treasury demand from foreign buyers is drifting down - a trend that has been ongoing since mid-2016. As of mid-4Q 2018, the combined foreign institutional holdings of U.S. Treasuries were at their lowest levels since the start of 2015.
2) The U.S. dollar strength is now at its highest levels since early 2002.
Meanwhile, liquidity is falling:
3) Global liquidity supply is turning down, having trended relatively flat since the start of 2015.
This is not a good set of signs, especially as