At Bloomberg, bond strategist David Ader suggests that, while there are plenty of threats that could drive interest rates higher, the idea that foreigners are pulling back from U.S. debt isn’t one of them.
“Foreign ownership is flat at $6.2 trillion, or 47.8 percent of privately held debt,” he writes. “Although that’s down from 59 percent in 2014, foreign ownership is flat in nominal terms. This is mainly due to rising demand a category of buyers dubbed ‘other’ as well as purchases by mutual funds and governmental entities including the Fed. Foreigners are not shying away; others have just been more assertive.”