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Elizabeth Warren Slams Scott Bessent: 'Huge Deal' If The World Stops Buying US Treasuries — Americans Will Pay Higher Interest Rates On Mortgages
Benzinga· 2026-01-22 02:51
Core Viewpoint - Senator Elizabeth Warren criticized Treasury Secretary Scott Bessent for minimizing the risks associated with declining global demand for U.S. Treasuries, emphasizing that this could lead to higher interest rates for consumers [2][4]. Group 1: Treasury Demand Concerns - The Danish pension fund, AkademikerPension, announced its decision to divest from U.S. Treasuries due to concerns over "poor U.S. government finances" and plans to invest in alternatives like cash and short-dated agency debt [4]. - Foreign governments now hold only 15% of U.S. Treasuries, a significant decrease from 40% in the 2010s, indicating a changing profile of U.S. government debt holders [4][5]. - For the first time in nearly three decades, foreign central banks held more gold than U.S. Treasuries, marking a notable shift in the global financial landscape [5]. Group 2: Market Reactions - The iShares Treasury Bond ETF (BATS: GOVT), which tracks U.S. Treasury bonds, saw a slight increase of 0.22% on Wednesday, closing at $23.00, although it has an unfavorable price trend in the short, medium, and long terms [6].