Central banks around the world offloaded US treasuries through March, as the sudden coronavirus-led sell-off in the global markets and recession fears triggered global dash for cash, mainly US dollars.
Foreign monetary institutions liquidated more than $100 billion worth of Treasury notes in the three weeks ended March 25, according to Federal Reserve data. The period ended days before the Federal Reserve opened a new repurchase agreement – an alternative method for foreign central banks to offload treasuries.
The US 10-year treasury yield fell to a record low of 0.36 percent on March 9 before recovering slightly to 1.276% on March 19. At press time, the benchmark yield is seen at 0.585%.
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