Free Republic

A series of weak auctions for U.S. Treasurys are stoking investors’ concerns that markets will struggle to absorb an incoming rush of government debt. ... inflation not tamed ... Federal Reserve will leave interest rates at multidecade highs for .. years to come. The 10-year yield—the benchmark for borrowing rates on everything from mortgages to corporate loans—finished the week around 4.5%... At the same time, the government is poised to sell another $386 billion or so of bonds in May—an onslaught that Wall Street expects to continue no matter who wins November’s presidential election. While few fear a failed auction—an...

When the latest Treasury International Capital data was released yesterday, many were quick to conclude that not only had China's selling of US Treasury ceased, but that with the addition of $7 billion in US government paper, China's latest total holdings of $1270.3 billion were the highest since May of 2014. And if one was merely looking at the "China" line item in the major foreign holders table, that would be correct. However, as we have shown before, when looking at China's Treasury holdings, one also has to add the "Belgian" Treasuries, which is where China had been anonymously engaging...