Foreign demand weakens at US Treasury auctions in March in midst of Middle East war

NEW YORK, - Foreign investors bought fewer two-, five-, and seven-year U.S. Treasury notes at last month's auction than in February, as conflict raged in the Middle East, data from the U.S. ‌Treasury Department ⁠released ⁠on Wednesday showed.

Foreign buyers purchased $6.024 billion of the ​latest two-year notes in March, about half the $13.190 billion ​bought in the previous month. They also took $9.167 billion of five-year notes, down 28% from $12.648 ​billion in February.

Overseas investors ⁠took in $6.976 ‌billion of seven-year debt in ​March, versus $10.547 ​billion the prior month.


Overall, the ⁠Treasury offered $76 billion in two-year notes, $77 ​billion in five-year debt, and $49 ​billion in seven-year securities.

Auction allotment data also showed large investment managers bought $44.320 billion of two-year notes, down from $48.093 billion in February.

These investment managers took in $48.188 billion of five-year ‌notes, up slightly from $47.652 billion in the February auction. They also absorbed $30.360 ​billion in seven-year ​debt ⁠versus $28.099 billion the prior month.

In the Treasury Inflation-Protected Securities (TIPS) market, the Treasury offered $21 billion in 10-year TIPS. Investment funds bought $15.454 billion of that supply, 5% more than at the previous auction.

Foreign investors, however, purchased $1.747 billion, a 44% decline from the prior sale.