Interest Rate Sensitivity · BIS Estimate

How much will US Treasury demand increase when interest rates rise by 100bp?

Even with the same interest rate hike, foreign private investors react much more significantly than the public sector. The private sector buys US Treasuries only when their yields are sufficiently high compared to other assets.

Foreign private sector

19.3%

Foreign public sector (mainly central banks)

1.5%

Approximately 13 times

Private sector interest rate sensitivity is about 13 times that of the public sector

PrivatePublic

Source: BIS, The Demand for Government Debt (June 2023, rev. April 2025) — Recited by Korea Center for International Finance (Sept 23, 2026)