Goldman Sachs links stronger dollar to reduced Treasury demand amid US-Iran conflict
Goldman Sachs has linked the recent strength of the US dollar to a decrease in demand for Treasuries amid escalating US-Iran tensions. Foreign institutions, particularly from China and Japan, have been selling US government bonds, diverging from the typical safe-haven behavior during geopolitical crises. This situation has led to rising Treasury yields and concerns about stagflation in the US economy.
- ▪The US dollar index rose over 2% in March 2026 as the US-Iran conflict intensified.
- ▪China and Japan, the largest foreign holders of US debt, were significant sellers of Treasuries during this period.
- ▪Goldman Sachs revised its US growth forecast downward and raised inflation projections, indicating potential stagflation.
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Goldman Sachs links stronger dollar to reduced Treasury demand amid US-Iran conflict Foreign institutions including China and Japan sold Treasuries as the dollar rallied over 2% in March, breaking the traditional safe-haven playbook. Share Add us on Google by Editorial Team May. 27, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); When geopolitical tensions spike, investors usually do two things: buy dollars and buy Treasuries.
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