Thread

US Treasuries Have Become Unappetizing for Foreign Central Banks and Governments

152 points · 132 comments · iamnothere

reenorap · 1789749185 · focus · HN ↗
Yes, that's called Quantitative Easing after the Global Financial Crisis. The peak in the graph was 2008 after which the US issues a shit ton of debt which was bought by the Fed. China used to be the biggest holder of US Treasuries but now it's the Federal Reserve and Japan.
But the idea that you look at that graph as say it's "unappetizing" is dumb. Most foreign governments besides China have INCREASED their UST holdings. The only reason why the % is dropping is because of the massive amount bought by the Fed which messed up the %.
1. method_capital · 1789749430 · focus · HN ↗
  Yeah ... and exactly how many of our treasury auctions have failed? Zero. Overbid by foreign parties, all of them.
  1. reenorap · 1789749974 · focus · HN ↗
    Exactly. Same as when Bessent wanted to buy 6B in long bonds but only bought 5.XB, people said that it failed but anyone who understands knows that it's the opposite. The oversubscription rate is normally 3X or more but this time it was 2X which means that people would rather keep their long bonds, which shows confidence in them.

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