Dwindling Attraction of U.S. Treasury Bonds
U.S. Treasury bonds are facing a severe demand crunch, resulting in the worst downturn since the Civil War. Factors such as increased borrowing by the government and a reduction in purchases by traditional buyers have led to high yields and struggling bond auctions. The scenario is compounded by the Federal Reserve offloading its bond holdings and major foreign creditors like China and Japan selling their bonds due to currency pressures.
- Treasury bonds offer lower yields than short-term bills, causing investors to prefer the latter.
- The U.S. spends a significant portion of its GDP on debt servicing, with expectations of this cost rising, setting the stage for continued borrowing amid shrinking demand from global and domestic buyers.
https://www.semafor.com/article/11/28/2023/nobody-wants-us-treasury-bonds
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2023-11-28 18:09:29
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npub1dwegu7taqadap2pzw6dszulc6r7gwmldawjpdrersuykxxlyzfeskds9g9Published at
2023-11-28 18:09:29Event JSON
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"content": "Dwindling Attraction of U.S. Treasury Bonds\n\nU.S. Treasury bonds are facing a severe demand crunch, resulting in the worst downturn since the Civil War. Factors such as increased borrowing by the government and a reduction in purchases by traditional buyers have led to high yields and struggling bond auctions. The scenario is compounded by the Federal Reserve offloading its bond holdings and major foreign creditors like China and Japan selling their bonds due to currency pressures.\n\n - Treasury bonds offer lower yields than short-term bills, causing investors to prefer the latter.\n\n - The U.S. spends a significant portion of its GDP on debt servicing, with expectations of this cost rising, setting the stage for continued borrowing amid shrinking demand from global and domestic buyers.\n\nhttps://www.semafor.com/article/11/28/2023/nobody-wants-us-treasury-bonds",
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