According to The Kobeissi Letter, world central banks are actively diversifying their reserves, with foreign holdings of US Treasuries now at approximately 23% of total US government debt, marking the lowest level in 22 years (source: The Kobeissi Letter, April 27, 2025). This reflects a decline of about 11 percentage points over the past nine years. Simultaneously, central banks have increased their allocation to gold as a percentage of global reserves. These shifts suggest a strategic move away from US dollar assets, potentially impacting Treasury yields, gold prices, and related forex markets. Traders should monitor reserve composition trends for potential volatility in US government bonds and increased bullish momentum in gold markets.

According to The Kobeissi Letter, the 10-year note yield has increased by 115 basis points since the start of rate cuts up to mid-January. As $9.2 trillion of government debt matures this year, the markets are preparing for significant refinancing challenges. A substantial portion of this debt was initially borrowed at lower interest rates, which may lead to increased costs for refinancing and impact bond markets.

According to The Kobeissi Letter, the 10-year note yield has increased by 115 basis points from the start of rate cuts to mid-January. This comes as $9.2 trillion of government debt is set to mature this year, leading markets to brace for significant refinancing activities. Many of these debts were initially issued at much lower interest rates, indicating potential challenges for refinancing at current higher rates.