The crisis of American assets dependent on foreign investors may occur next year, writes MarketWatch citing a warning from a strategist at Standard Chartered Bank.
Steve Englander, head of G10 global currency research at Standard Chartered, claims that 2026 will be critical: foreign investors will decide whether to support the growing debt of America.
Over the last decade, the external debt of the United States has significantly increased. This dependence on international investors for financing the growth of public debt means that any reluctance on their part to buy treasury bonds or dollars will be quickly and painfully felt.
Despite some volatility, the yield on 10-year treasury bonds has decreased by 15 basis points this year. Meanwhile, the dollar index has fallen by 8% since the beginning of the year.
