China's Demand for Treasuries Slowing, SocGen's Rajappa Says

The video discusses the recent auction of U.S. Treasuries, focusing on the buyers involved, such as primary dealers and indirect bidders, and the implications of foreign demand. It highlights the trends in foreign investment, particularly China's declining FX reserves and demand for Treasuries. The analysis extends to auction yields, noting their highest levels since 2008. The video also explores the relationship between the dollar and exchange rates, emphasizing structural adjustments in currencies like the yen and euro, and the impact of synchronized G10 policies.

What is a primary concern when primary dealers dominate Treasury auctions?

• Higher auction yields

• Decreased foreign participation

• Lower auction yields

• Increased foreign demand

How has China's demand for U.S. Treasuries changed recently?

• It has fluctuated wildly

• It has declined

• It has remained stable

• It has significantly increased

What is the current trend in overseas demand for U.S. Treasuries?

• Increasing

• Stable

• Unpredictable

• Decreasing

What has happened to the relationship between the U.S. dollar and front-end yields?

• It has become unpredictable

• It has remained unchanged

• It has weakened

• It has strengthened

What is causing the structural adjustment in the yen and euro currencies?

• Unpredictable market conditions

• Stable central bank policies

• Decreased QE and return to fair value

• Increased QE by central banks