Snapshotting The Shifting Buyer Base For US Treasurys

Beginning in early August, market participants began to obsess over the shifting buyer base for US Treasurys. The narrative is a simple one, even if the discussion itself is as deep as the Treasury market is supposed to be. Price-agnostic buyers, including and especially the Fed, are stepping away just as supply ramps up, leaving price-sensitive investors to absorb more issuance. In other words, price discovery is back. That, at a time when ratings agencies are starting to ask uncomfortable que