We are bearish on U.S. government paper – in all its forms. And here’s why. The latest estimate from Goldman Sachs puts US government borrowing for this fiscal year at $2.5 trillion. Meanwhile, foreigners are showing less and less interest in U.S. debt. They’re switching to short term paper – bills and notes, which are less vulnerable to inflation and currency declines. And they’re pulling out of U.S. Treasury market generally. The total percentage of U.S. debt owned by foreigners is falling from 60% down to about 40%…a huge drop.
Bad News for Bond Prices
Posted by StingingNettle 362 days ago (http://www.dailyreckoning.com)
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