Treasuries meet China

One reason why long-term treasury yields have been increasing and bond investors are suffering has nothing to do with the Fed and the view on inflation. There are structural sellers of long-term Treasuries around: China for example has decreased its holdings substantially over the last decade. Reasons are multiple and complex, from de-dollarization, economic to geopolitical, but the impact should not be underestimated and should be part of the duration debate amongst portfolio managers.