POPA ReconUK is a buyer of US treasuries because UK is a main jurisdiction for major hedge funds (so are other financial havens like HK, Singapore…
UK is a buyer of US treasuries because UK is a main jurisdiction for major hedge funds (so are other financial havens like HK, Singapore, Bermudas, Cayman Islands, maybe Luxembourg/Belgium/Switzerland?). If Bessent is signalling that they want to soothe the US sovereign bond market volatility, US treasuries will once again become a low-volatility pristine collateral for hedge funds to get , in order to lever up their balance sheet for trading (can be basis trade yield, or cross-collateral for their trading activities, help them absorb more US treasuries on their balance sheet).
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