Charted Territory - January 2026

Headlines are loud.  Liquidity is louder.

Recent headlines and geopolitical tensions have reignited the “Sell America” narrative with some investors questioning the long-term appeal of US assets, particularly US Treasury bonds. This comes amid reports of some foreign pension plans already selling their Treasury holdings.

While it is important to monitor these developments, there has been little evidence to suggest a material shift has begun. Recent Treasury auctions have experienced robust demand – from both domestic and foreign buyers – while US bond funds continue to receive inflows.

For investors, any move away from the $31 trillion of index-eligible US bonds (and similar amount of non-index debt) would likely be gradual and on the margin – it is challenging to implement at scale and there is an opportunity cost of forgoing the relative size, depth, and liquidity of US bond markets versus others.
 

The US Bond Market's Depth and Liquidity Are Difficult to Replicate

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