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Foreign interest in Treasuries returns

U.S. treasuries held in foreign custody saw renewed interest in the closing weeks of 2016 and into 2017 after falling to a four-year low in early November. There was $2.9 trillion in Treasury debt held in foreign accounts as of Jan. 4 after declining throughout the second half 2016 to $2.8 trillion on Nov. 9.

Ten-year government rates rallied significantly during November and December as the Federal Open Market Committee raised the discount rate following its Dec. 14 meeting, while investors are anticipating as many as three similar hikes in 2017.