Foreign demand for U.S. bonds is staying strong. Ali Majdfar / Getty Images Close Key Takeaways New data from the Treasury Department showed continued appetite among foreign investors for U.S. securities, including the bonds that the Treasury issues to finance deficits. Net capital inflows were over $300 billion in August and September. It's the latest evidence that the fears of massive outflows from U.S. government bonds after President Donald Trump's more-aggressive-than-expected tariff announcements in A ...

Is dd dollararization real. That was a hot topic of discussion at this week's Bloomberg New Economy Forum in Singapore. Now, we heard from the top investment minds from money managers, hedge funds, clearing houses on whether King Dollar will be dethroned.>> I don't think there's a question about the dollar dominance. I think there's a question about how much it gets chipped away. Dollar dominance that I always come back and say, well, where else are you going to go.Right. So, so start with that. But there's ...

Is the world moving away from the US dollar as the main reserve currency? And is there a viable alternative?@Ruth_Liew10 explains the consensus on the ground on de-dollarization at the Bloomberg #NewEconomyForum: https://t.co/r78fnAXJwY https://t.co/xA8WkAG0QF ...

RT Bloomberg New Economy (@BBGNewEconomy)As global trade and finance evolve, the question looms: Is de-dollarization truly underway?We hear from CEO of @EuroclearGroup Valerie Urbain at the #BloombergNewEconomy Forum.For details: https://t.co/2T7Qg43jlf https://t.co/IWHijtZpUt ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the U.S. Treasury (UST) market and the evolving demand dynamics since April 2025, particularly in the context of "de-dollarization" and foreign official sector selling [2][9][19]. Core Insights and Arguments 1. **De-dollarization and UST Demand**: - There has been a notable decline in UST custodial holdings from the foreign official sector, dropping approximately $170 billion since late April 2025, despite a recent recovery of about $25 billion [9][10]. - This decline coincides with a weaker dollar and lower foreign reverse repurchase agreement (RRP) balances, indicating a potential reduction in USD holdings by officials [9][10]. 2. **Foreign Private Demand**: - Foreign private investors have significantly increased their UST holdings, with total foreign private buying nearly ten times the amount of official selling since the end of 2022 [19][20]. - This divergence suggests that while the official sector is a net seller, private demand remains robust, supporting the overall UST market [19][21]. 3. **Domestic Bank Purchases**: - Domestic banks have purchased around $160 billion in USTs since April 2025, offsetting much of the implied selling from custodial accounts [27][28]. - The increased bank buying is attributed to attractive asset swap valuations and a steeper front-end curve [27]. 4. **Investment Fund Activity**: - Investment funds continue to dominate UST auction demand, with inflows into UST fixed income funds remaining firm over the past year [30][36]. - Active fund inflows year-to-date have been among the strongest in the last five years, indicating a strong appetite for USTs [37][38]. 5. **Positioning Trends**: - Positioning among funds is described as modestly long and in steepeners, with a shift observed in the front end of the curve [34][35]. - Commodity Trading Advisors (CTAs) remain long based on momentum signals, which could exacerbate a selloff if rates trend higher [35][36]. 6. **Market Dynamics**: - The UST market is characterized by a flattening bias in the yield curve, driven by out-of-the-money longs at the front end and shorts at the back end [31][33]. - The overall demand landscape for USTs is supported by low volatility and the effects of virtual Treasury quantitative easing [2][36]. Additional Important Insights - **Foreign Official Selling**: - The relationship between foreign official holdings and UST spreads has shown little sensitivity, suggesting that other buyers are stepping in to absorb the selling pressure [17][19]. - **Hedged Pickup Analysis**: - The hedged pickup for USTs compared to local alternatives is currently negative for major foreign investor types, indicating potential challenges in attracting foreign investment [77][80]. - **Upcoming Economic Indicators**: - A calendar of upcoming U.S. economic data releases and Federal Reserve events is provided, which may impact UST demand and market sentiment [41]. This summary encapsulates the key points discussed in the conference call, highlighting the dynamics of the UST market, the contrasting behaviors of foreign official and private investors, and the positioning trends among domestic banks and investment funds.

RT Bloomberg New Economy (@BBGNewEconomy)Crypto, private credit & de-dollarization are shaking global finance.Tech, markets & geopolitics are rewriting the rules — and testing the Bretton Woods system itself.Join the conversation at the #BloombergNewEconomy Forum, Nov 19–21 in Singapore.https://t.co/2T7Qg43jlf https://t.co/CP5yBokaYZ ...

Geopolitical Implications - China has established independent financial infrastructure to bypass the US dollar system [1] - This infrastructure enables China to conduct international transactions without relying on the dollar [1] Yuan Internationalization - The development facilitates the use of the yuan in international transactions [1]

Phiwath Jittamas/iStock via Getty Images By Ivan Castano Bullishness around AI and tech stocks, coupled with expectations for falling rates, could boost U.S. capital markets in the next 12 months, strategists say. Magnificent 7 stocks remain popular and earnings are strong – factors that have already seen the Nasdaq and S&P 500 gain around 15% and 12%, respectively, as of mid-October. Barring an unexpected shift in monetary policy, deteriorating economic conditions and/or another unforeseen event, the r ...

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Hong Kong Equity Market - **Current Market Performance**: Hong Kong's equity market (MXHK) has shown a 26% year-to-date return in US terms, making it the cheapest market in the Asia-Pacific region excluding ASEAN, with a forward P/E ratio of -0.3 standard deviations compared to its 10-year average of 16x [2][76] Core Insights and Arguments - **Market Targets**: The end-2025 targets for the MXHK index are maintained at 13,000 (base) and 14,000 (bullish). For 2026, potential upside targets are set at 14,366, 15,522, and 16,679, reflecting growth assumptions of 6% and 9% year-on-year for 2025 and 2026 respectively [2][8] - **Synchronized Recovery**: A synchronized recovery across various sectors in Hong Kong is noted, with significant improvements in IPO fundraising, residential property prices, and retail sales growth [5][58] - **Macau Gaming Sector**: The Macau gaming sector is experiencing a cyclical upturn, with GGR (Gross Gaming Revenue) showing a 13% year-on-year increase in 3Q25, reaching MOP62.6 billion, which is 88% of pre-COVID levels [52][57] - **Investment Inflows**: There has been a notable increase in Southbound inflows to Hong Kong, reaching a record HK$1.17 trillion in 9M25, approximately 2.2 times the level of 2024 [38][49] Important but Overlooked Content - **Headwinds**: Near-term challenges include renewed US-China tensions, rising HIBOR rates, potential oversupply from IPO lock-up expirations, and risks in the commercial real estate sector [5][100] - **Housing Market Stabilization**: After a 27% correction since 2021, Hong Kong's housing market is stabilizing, with forecasts of a 3-5% year-on-year price increase in 2026 [45][49] - **Market Sentiment Index**: The JPM HK Market Sentiment Index indicates a positive outlook, having reached a decade high of +1.5 standard deviations in September 2025, suggesting strong capital market activities [70][65] - **Valuation Comparison**: Despite strong performance, MXHK trades at a forward P/E ratio that is -0.3 standard deviations below its 10-year average, indicating compelling valuation compared to historical levels and regional peers [76][78] Top Picks for 2026 - **Recommended Stocks**: - **Futu Holdings Ltd (FUTU.O)**: Capital market strength - **HKEX (0388.HK)**: Financials - **Galaxy Entertainment (0027.HK)** and **MGM China (2282.HK)**: Macau gaming upcycle - **Techtronic Industries (0669.HK)**: Resilient overseas demand - **Henderson Land Development (0012.HK)**, **China State Construction International (3311.HK)**, and **MTR Corp Ltd (0066.HK)**: Northern Metropolis development [6][2] This summary encapsulates the key insights and data points from the conference call, providing a comprehensive overview of the current state and outlook of the Hong Kong equity market.

Core Insights - China is strategically shifting from dollar-denominated loans to yuan-denominated loans to enhance the international use of the yuan and reduce reliance on the dollar amid geopolitical tensions [3][5][21] Financial Implications - Chinese lenders can issue yuan bonds at lower costs compared to dollar debt, allowing them to lend at reduced rates without incurring significant losses [1][15] - Kenya reported a reduction of $215 million in annual debt-servicing costs by converting its Chinese railway loans from dollars to yuan [5] - Ethiopia is looking to convert part of its $5.38 billion debt to China into yuan loans, indicating a trend among sovereign nations to seek cheaper financing options [6][10] Geopolitical Context - The shift to yuan loans is part of China's broader strategy to deepen its influence in Africa and counterbalance U.S. financial dominance [3][10] - The yuan's increased role in international commerce is seen as a way to mitigate the financial advantages held by the U.S. [3][21] Global Yuan Adoption - There has been a notable increase in the issuance of yuan-denominated bonds, with a total of 68 billion yuan ($9.5 billion) issued as of October this year, doubling the total for the entire year of 2024 [8] - Countries like Hungary, Kazakhstan, and Sri Lanka are actively engaging in yuan-denominated financing, reflecting a growing trend [8][10] Economic Strategy - China's economic slowdown and deflationary pressures are prompting a loose monetary policy, making yuan loans more attractive to global borrowers [7][19] - The People's Bank of China is working to open up domestic financial markets and encourage the use of the yuan in international trade [16][17] Long-term Goals - China's ambition is to establish the yuan as a credible alternative in a multi-polar monetary system and eventually as a global reserve currency [21][22] - The ongoing efforts to promote the yuan's internationalization may require deeper financial reforms and easier access for foreign investors [22][23]