RESEARCH BRIEFING
20 Aug 2026
US Treasury demand is holding, but the buyer base is shifting
Explore the evolving Treasury market dynamics, including shifts in demand, interest rates, and strategies for managing borrowing needs.
Treasury demand is evolving, with a notable shift towards more price-sensitive buyers amid changing market dynamics. While Treasury yields are expected to remain elevated in the near term, a gradual decline is anticipated as inflation pressures ease.
The Federal Reserve is likely to maintain a hawkish stance through 2026 due to persistent inflation, but easing services inflation and a cooling labour market may prevent further rate hikes. Long-end yields are projected to fall slowly, influenced by heavy Treasury supply and geopolitical uncertainties, alongside record corporate borrowing linked to AI investments.
Recent data indicates that foreign demand for Treasuries has weakened, leading to increased reliance on domestic investment funds and leveraged investors. The Treasury plans to adjust its issuance strategy, focusing more on shorter-term securities to manage rising borrowing needs effectively.
Download the report for more detailed insights.
