Global Investors and Central Banks Take Cautious Steps Regarding US Assets
Rising US debts and sanction policies are changing the perception of global capital's safe haven, driving central banks to repatriate gold reserves and reduce their shares in bonds.
The Trump administration's growing debts and economic sanctions are raising questions about the United States' position as a safe haven for global capital, while economies around the world have begun taking steps to reduce their dependence on the US.
Shift in the Perception of the Global Safe Haven
The increasing debts during the second term of the Trump administration and the frequent use of sanctions have caused signs of change to emerge in the US's position as a safe haven for global capital.
Economic Debts and Question Marks
A debt burden of approximately 40 trillion dollars and the increased use of sanctions to solve foreign policy issues are leading international investors to experience question marks regarding America's appeal.
Financial Markets and Bond Yields
While private investors continue to channel capital into artificial intelligence infrastructure, the yield on 10-year US Treasury bonds has exceeded 5%, reaching the highest level recorded since 2007.
Central Banks and Reserve Changes
While Norway's largest sovereign wealth fund announced it will reduce its share in US Treasury bonds, the share of the dollar in reserves has dropped to 56%, and some countries have repatriated their gold.