📌RE: US Fiscal Debt Situation

Think there is a common misconception that foreign holders are currently divesting from US Treasury bonds.

However, the truth is that the total $ amount of USTs held by foreigners has continued to go UP.

Includes China, Japan, UK etc

Yields have probably failed to go decisively lower b/c:

1. Ongoing Fed QT

2. Total Debt has increased more than growth in foreign + other domestic holdings.

Implication: You need all 3 types of buyers -- Fed, other domestic, and foreign buyers to purchase USTs for yields to go lower b/c the debt pile is already growing so fast...

No enough about US fiscal debt.

Enjoy the 4th of July! 🙂