«A meaningful slowdown in global trade may result in less FX reserve accumulation globally, reducing the need to buy US Treasurys,» a group of BAML strategists led by Carol Zhang wrote in a client note. (businessinsider.com)
As for the British example at the end of the 19th Century, in those days currency was part of reserve accumulation, but much if not most reserves were in the form of gold or silver, and while Britain had the most important reserve currency, the difference between central bank holdings of sterling and central bank holdings of other gold - based currencies, like the franc, were pretty small relative to total trade. (carnegieendowment.org)
«Bottom line, a major crutch for the U.S. Treasury market over the past decade of foreign central bank reserve accumulation has gone away for now,» Boockvar said. (nbr.com)