ML-Implode News - A Foreign Threat to U.S. Treasuries That Dwarfs Fed's Debt Hoard

In overseas markets, more than $3 trillion of negative-yielding government bonds -- which all but guarantee losses for buy-and-hold investors -- have turned positive in recent months. And analysts say that number may grow over the next few years as brighter economic prospects and shifts in monetary policy lift trillions more out of sub-zero levels in Europe and Japan.
The consequences for the U.S. bond market could be significant. Simply put, foreigners who have poured vast amounts of money into higher-yielding Treasuries may be less inclined to do so now that they have more viable fixed-income options at home. Any sustained retreat could lead to painful losses, particularly at a time when Fed officials are suggesting the central bank may finally be ready to pare its holdings, which include $2.46 trillion of Treasuries.

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A Foreign Threat to U.S. Treasuries That Dwarfs Fed's Debt Hoard