John Briggs, an interest rate strategist at the French Foreign Trade Bank, said in a report that foreign demand in US treasury bond auctions has never been a major driver of overall auction demand, but it can be used as an indicator of the overall interest of foreign investors at a time when liquidity supply is abundant. He said that foreign participation in the 10-year US Treasury bond auction has been rising. It is currently 19% based on a three-month average, while participation in the 5-year US Treasury bond auction has risen to 15%, which is the highest level since December 2023 and June 2023, respectively. Briggs said, “Interestingly, foreign demand for 30-year US Treasury auctions has also risen to 14%, the highest level since October 2023. “The increase in demand may be due in part to rising expectations for the Federal Reserve and hopes for a steeper yield curve,” he said.

John Briggs, an interest rate strategist at the French Foreign Trade Bank, said in a report that foreign demand in US treasury bond auctions has never been a major driver of overall auction demand, but it can be used as an indicator of the overall interest of foreign investors at a time when liquidity supply is abundant. He said that foreign participation in the 10-year US Treasury bond auction has been rising. It is currently 19% based on a three-month average, while participation in the 5-year US Treasury bond auction has risen to 15%, which is the highest level since December 2023 and June 2023, respectively. Briggs said, “Interestingly, foreign demand for 30-year US Treasury auctions has also risen to 14%, the highest level since October 2023. “The increase in demand may be due in part to rising expectations for the Federal Reserve and hopes for a steeper yield curve,” he said.