5% is New 4% in Era of Higher Yields, Says Guneet Dhingra (Head of US Rates Strategy at BNP Paribas) | Bloomberg

Topic 1: The Structural Shift in Global Treasury Demand

• Sovereign Retreat: Traditional foreign official institutions have fundamentally shifted from being key pillars of US debt demand to active net sellers.
• The Core Sellers: Over the last 8 to 12 months post-"Liberation Day," official data confirms that Brazil, India, and China—historically three of the largest absolute buyers of US Treasuries—have become net sellers.
• European Slowdown: Major European nations that previously absorbed significant coupon supply have scaled back their accumulation pace.
• The New Buyer Profile: Current overseas net buyers are heavily concentrated within international financial centers.
• Market Vulnerability: Unlike traditional sovereign wealth or central banks that buy passively to anchor absolute yield targets, these financial center buyers are highly price-sensitive. They prioritize relative value and macro dynamics, leaving the long end structurally fragile and exposed to volatility.