Demand for US treasuries in March weakened among foreign investors.

Barclay's Andres Mok and Demi Hu stated in a report that amid escalating geopolitical uncertainties and increased volatility, foreign investors' demand for US Treasury bond sales in March weakened. These strategists said, "Overall, the participation of foreign investors in bond sales across various maturities has declined, dropping back to trend levels after a period of increasing demand." They noted that as conflicts in the Middle East intensified and oil prices surpassed $100 per barrel, investors lowered their expectations for rate cuts this year. "The bond market was sold off, yield curves flattened, and demand for Treasury bond sales weakened." They stated that this decrease in demand may reflect some cautious sentiment in the market amidst rising interest rate volatility and increased uncertainty in March, rather than a change in underlying demand dynamics. Domestic investors also withdrew from short-term Treasury bond sales, but increased their purchases of longer-term bonds, offsetting the impact of declining foreign investor participation.