From Quiver Quantitative: 2025-04-29 03:34:00

Deutsche Bank analysts warn of a halt in foreign purchases of U.S. assets, with no rebound in sight. Overseas investors are actively selling U.S. bonds, leading to concerns about capital outflows. The dollar is at risk due to twin deficits and a shift in sentiment by George Saravelos from bullish to bearish. The U.S. faces potential pressure on Treasury funding and deficit financing if disinvestment continues. Policy shifts may be needed to restore foreign confidence in U.S. assets.

A rare simultaneous sell-off in U.S. equities and Treasuries has raised worries about global investor retreat. The pace of foreign disinvestment will be crucial in determining the stability of U.S. capital markets and the trajectory of the dollar. Investors and policymakers will closely watch for signs of reversal in capital flows as Deutsche Bank’s flow analytics provide early warning signals.



Read more at Quiver Quantitative: Foreign Buyers’ Strike Threatens Dollar’s Reign as U.S. Capital Flows Stall (DB)