Bloomberg Surveillance · Wednesday, September 2, 2026
Jay Pulaski discussed the changing ownership of the US Treasury market, noting a shift away from foreign central banks towards hedge funds, who are short-term holders. This change, he argued, is a significant factor to consider, especially with current interest rate levels not driving foreign interest and the dollar weakening.
“The dollar has done nothing, right? The dollar is actually weaker. So that suggests that the yields at this level are still not really driving foreign interest. And I think that's a real issue.”
“I think the ownership of the Treasury market, which we've written about extensively, has changed. It's no longer foreign central banks and reserve managers who hold for long periods. It's now increasingly hedge funds who are the opposite of a long-term holder.”
“And I think that is something to consider.”