»The Federal Reserve caused most of the rate surge by raising the rate at which it charges banks for overnight money, to be sure. But a significant increment in the so-called real yield of Treasury bonds – in this case, the interest rate on inflation-indexed Treasuries (TIPS) – is due to reduced purchases of US debt by foreign central banks. Roughly 80 basis points (8/10ths of a percentage point) are explained by reduced foreign central bank holdings of US government debt.

Foreign central banks, including those of China, India, Saudi Arabia, and Turkey, began shifting their foreign exchange reserves into gold and out of Treasuries after the US and its allies seized half of Russia’s $600 billion in foreign exchange reserves in early 2022, following Russia’s invasion of Ukraine.«via @asiatimesonline