Bloomberg/Tracy Alloway/10-3-2022
“In fact, they say, all of the three main buyers for US government debt — commercial banks, foreign governments and of course the Federal Reserve itself — appear to have stepped away from the market. While some of the retreat is to be expected as the US central bank tapers its balance sheet, the scale of the shift in appetite is still noteworthy, they write.”
USAGOLD note: That lack of demand worries a lot of Wall Streeters. We would suspect that it worries the Fed as well. If anything is going to precipitate a Bank of England-style turnaround in the United States, it will be an oversupply of Treasury paper the market is unwilling or unable to absorb. JP Morgan is also worried about the market for mortgage paper.
