According to The Kobeissi Letter, demand for Japanese government 10-year bonds was weak at Tuesday’s auction, with the bid-to-cover ratio at 3.02, below last month’s 3.30 and the 12-month average of 3.24. According to The Kobeissi Letter, the bid-to-cover is a gauge of demand strength, and the decline reflects rising investor reluctance toward JGBs.

According to @KobeissiLetter, Denmark’s holdings of US Treasuries have dropped to about $9 billion, the lowest level in 14 years. According to @KobeissiLetter, the country reduced its position by roughly $4 billion over the last year, about 30%. According to @KobeissiLetter, holdings are now more than half below the 2016 peak, signaling a continued drawdown in this foreign holder’s UST exposure.