Foreign Investors Dump $29B T-Bills; US Bets on Stablecoins as New Buyers

The divergence matters less as a demand signal than as a structural one: foreign official buyers are stepping back from the front end of the curve while private, crypto-native balance sheets are being treated as a substitute marginal buyer. That is a notable shift in who absorbs short-dated US debt, and it ties Treasury funding conditions to stablecoin issuance cycles and reserve-management choices. The open question is whether stablecoin reserve growth can scale enough to matter against sovereign-sized flows, or whether it remains a marginal offset.