Biggest treasury buyer outside US quietly offloads nearly $60 bn

In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round. 

Japanese institutional managers -- known for their legendary U.S. debt buying sprees in recent decades -- are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion balance sheet.

The latest data from BMO Capital Markets show the largest overseas holder of Treasuries has offloaded almost $60 billion over the past three months. While that may be small change relative to the Japan’s $1.3 trillion stockpile, the divestment threatens to grow. 

That’s because the monetary path between