🚨 THE U.S. DEBT MARKET IS UNDER GROWING PRESSURE
China’s holdings of U.S. Treasuries have fallen sharply from their historic peak, while Japan has also been reducing exposure to U.S. debt.
⚠️ Why this matters:
The U.S. continues running massive deficits that require constant debt issuance.
If foreign buyers step back: • Treasury yields rise
• borrowing costs increase
• mortgages get more expensive
• credit tightens across the economy
That is exactly why long-term yields have surged toward multi-decade highs.
The global bond market is now questioning: • inflation stability
• debt sustainability
• future Fed policy
• long-term demand for Treasuries
For decades, foreign capital helped finance U.S. deficits cheaply.
Now that support appears to be weakening.