Damus
Lyn Alden profile picture
Lyn Alden
@LynAlden
Normally, the foreign sector sells Treasuries during a spike in the dollar index, in order to defend their currencies. Then, when the dollar index corrects back down, they re-accumulate the Treasuries that they had sold during the spike.

During this most recent dollar index correction, the foreign sector did not re-accumulate their Treasuries. Around the margins, it has been a more persistent (albeit still small) shift away from Treasuries.

74❤️7🤙20
Derf · 175w
It looks like de-dollarization is happening at the margins and that shows up in the graph.
Petr · 175w
What does it mean?
Smaug · 175w
So if they don't buy more treasuries, what strategy will they use when the dollar spikes to defend their currency going forward?
darkbulb · 175w
The jig is up
Samee · 175w
Do we have any idea where that capital is going instead?
zerø · 175w
Learn a ton from your newsletter Lyn. Reading this feels like sitting in an advanced Economics lecture.
Back Office Report · 174w
Holy shit Lyn Alden has a Nostr. Why does this not surprise me. You’ve always been one of my financial role models. You speak facts and don’t care what others think.