Justin Ho

I'm Justin Ho for Marketplace.

Over the past year or so, a lot of foreign investors have either sold or threatened to sell U.S.

treasuries.

Guy Labat is chief fixed income strategist at Janie Montgomery Scott.

Some European investors said they'd pull away from treasuries after President Trump's threats to take over Greenland.

Many foreign investors sold treasuries after the president's Liberation Day tariff announcement.

Labat says that matters because demand for government bonds affects bond yields.

In other words, the federal government is going to have to pay more interest on the national debt.

That said, foreign demand for U.S.

Treasuries has been holding steady over the last several months.

Chris Lowe at FHN Financial says one reason is because tariffs haven't been as extreme as investors worried they might be.

Another reason, he says, is that treasuries are still more attractive than bonds from the rest of the world.

Interest rates in other countries have been rising, in Japan and the U.K.

And that makes U.S.

bonds look more attractive, despite all of the ongoing uncertainty in this economy.

Bottom line, the U.S.

Treasury market has been stable over the last few months, says Guy Labat at Janie Montgomery Scott.

And sometimes a stable market isn't such a bad thing.

I'm Justin Ho for Marketplace.

When you think about it from just the cost of debt capital perspective, 2020 and 2021 were very low interest rate years.