Little indication that USD hedge ratios are rising

Shifting Trends in US Asset Investment

Earlier this year, prior to the escalation of tensions in Iran, the weakening dollar sparked speculation about whether European investors were reducing their exposure to US assets or increasing their currency hedging on American investments. During this time, Washington made headlines with its aggressive stance on Greenland following the removal of Nicolas Maduro.

However, there is little concrete evidence to confirm these theories, and data regarding hedge ratios appears to contradict such assumptions. The latest available US Treasury International Capital (TIC) report, covering January, shows that private sector interest in US Treasuries remains steady.