Part 6/11:
Investors have also reacted to domestic legislative standoffs, notably the debt ceiling negotiations, which have often appeared chaotic and uncoordinated. Such episodes have prompted global bondholders to reassess their exposure, with many considering reducing their holdings of dollar-denominated assets. This shift mirrors a longer-term decline in confidence, historically only seen in emerging markets, raising concerns about the future trajectory of the U.S. dollar and Treasuries.