🚨 THE WORST CASE SCENARIO FOR THE U.S. DEBT MARKET IS HAPPENING RIGHT NOW.
China's total holdings of US Treasury bonds have dropped to $693 billion, back to levels last seen during 2008 crash. $GUA
China once held over $1.3 trillion in US debt. That number has been cut nearly in half over the last decade.$RIVER
As the US continues to run a $2 trillion annual deficit, the countries that used to buy that debt are selling agressively. Japanese investors also dumped US bonds at the fastest pace in 4 years. China is now at an 18 year low.$NATGAS
When there are fewer buyers for US debt, the US has to offer higher interest rates to attract new ones. That is why the 30-year Treasury yield just hit 5.1%. That is why mortgages, car loans, and credit card rates are at multi decade highs.
The people who funded America's debt for decades are walking away. And the bill is being passed to every American who borrows money.