Goldman Sachs Asset Management and Philip Moffitt

Philip Moffitt: While the government bonds have fallen this month as the Fed boosted its forecast for how much rates will rise next year, the dollar climbed to its highest level since 2010 against a broad range of currencies. Thats transformed losses into gains for most foreign holders, who own $6 trillion of Treasuries. The U.S. currency has appreciated so much that Treasuries are the developed worlds best-performing sovereign debt this quarter for investors based in euros, pounds and yen, according to Bloomberg. You re getting a relatively higher yield by owning Treasuries as well as benefiting from a rising dollar, so the U.S. is going to suck in capital, Philip Moffitt, the Sydney-based head of fixed income for Asia-Pacific at Goldman Sachs Asset Management, which oversees $935 billion globally, said in an e-mail response to questions on Sept. 19 and The prospect of higher U.S. interest rates is proving to be a boon for the biggest owners of Treasuries outside of the Federal Reserve . Sustaining demand from Americas biggest foreign creditors, such as the Chinese government and Japan s Kokusai Asset Management Co., is crucial in containing funding costs as the Fed winds down its own extraordinary bond buying and prepares to lift rates for the first time since 2006. With Treasuries offering the highest yields in seven years relative to sovereign bonds worldwide, the dollars strength may now help prevent an exodus of overseas investors from upending the $12.2 trillion market for U.S. government debt . (news.financializer.com). As reported in the news.