A notable big buyer of Treasury bonds in July was Switzerland. Analysts see this as a move by the SNB to park intervention money. Tuesday's TIC data showed that Switzerland in July added $18.6 billion in Treasurys following June purchase of $10.6 billion. "The Swiss are working to diversify their foreign currency reserves which have become overweighted in euros as part of their 1.200 EUR/CHF" floor, says Adrian Miller, director of global markets strategy at GMP Securities. He argues that August could see a slowing of TIC buying due to ECB-led improved sentiment. But he expects US assets will continue to draw a premium bid tied to being the asset group that is likely to provide the best opportunity to generate superior risk-adjusted results over the near- to medium-term.
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