State Street Global Markets strategist Marija Veitmane pointed out that custody databases show institutional investors increased their portfolio risk exposure in June, while significantly reducing their holdings in U.S. Treasuries and dollar assets. This is particularly noteworthy as investors' positions in these two asset classes are at their lowest levels in years. She also mentioned that investors continue to question the traditional safe-haven status of these two assets. Neither the sell-off in U.S. stocks in the first quarter, the escalating concerns about fiscal sustainability in the second quarter, nor the recent outbreak of conflict in the Middle East has triggered a buying spree for the dollar or U.S. Treasuries. This trend of selling U.S. Treasuries stands in stark contrast to the increased holdings in Japanese and European bonds.