Foreign Holders of U.S. Debt 2019
- Thread starter dealmaker
- Start date
How is this compared to domestic holders?
Nice graphic. Really show how tightly China & Japan are tied to the hip with U.S Treasury.
Though both countries have largely abstained from U.S sovereign auctions since 2016. Govi debt still gets bought though. Greater percentage is getting taking down domestically. Might be among the number of issues that removes long-term demand on $USD.
Though both countries have largely abstained from U.S sovereign auctions since 2016. Govi debt still gets bought though. Greater percentage is getting taking down domestically. Might be among the number of issues that removes long-term demand on $USD.
They will pass a law soon in the US, that the US Fed can directly purchase Treasuries, like every other major economy in the world at this stage... Who is gonna buy Euro debt or Japanese debt at those rates ? ECB is the only game in town in EU, has been for few years... Even china debt no one bids cause currency isn't floated, and 0 faith in RMB, only bids is state owned banks that buy government debt with money the pboc gives them, the chinese central bank is basically buying it's own debt, they just add an extra layer for make-up purposes I guess... Once they float and currency collapses, if they keep 4-5 % interest, they will see bids on sovereign bonds... North America has to act and keep interest rates above elsewhere, if they go to ZIRP or eventually NIRP, only IG debt investments made will be in EM with solid currency's ( rare I know... )