A former IMF official has highlighted concerning signs in the US Treasury market, noting that long-term bond yields remain high despite recent Federal Reserve rate cuts. The US government’s shift to short-term borrowing has not lowered yields as expected, and foreign appetite for US debt, including from China, appears to be waning. Chinese banks have reportedly been advised to limit their exposure to US Treasuries, raising concerns about a potential crisis in the bond and dollar markets.

#IMF