Market Dynamics: Foreign Investment Surges, FHFA Adjusts Loan Caps, and Amazon Expands Data Center Footprint

Group 1: Treasury Market Dynamics - Foreign investors have significantly increased their acquisition of U.S. Treasury securities, particularly in the 3-year and 10-year notes, with a modest rise in 30-year bond purchases [3][9] - Investment funds have shown a mixed demand profile, slightly increasing their purchases of 10-year and 30-year Treasuries while reducing their exposure to 3-year notes [4][9] - The 10-year Treasury yield recently decreased to 4.06% from 4.10%, influenced by a mixed U.S. jobs report and speculation regarding potential Federal Reserve rate cuts [4] Group 2: FHFA Multifamily Loan Purchase Caps - The Federal Housing Finance Agency (FHFA) has set the 2025 multifamily loan purchase caps for Fannie Mae and Freddie Mac at $73 billion each, totaling $146 billion, marking a 4.3% increase from 2024 [5][9] - The FHFA continues to exclude multifamily loans that finance workforce housing, promoting affordable housing preservation, and mandates that at least 50% of the enterprises' multifamily business must support mission-driven, affordable housing [6][9] Group 3: Amazon's Investment in Indiana - Amazon has announced a $15 billion investment project in Indiana, expected to create 1,100 new jobs and add 2.4 gigawatts (GW) of data-center capacity in the region [7][9] - This investment reflects the ongoing demand for data center capabilities, essential for supporting cloud computing, artificial intelligence, and other digital services [7]