Financial Times/Colby Smith/4-9-2021
“US government bonds were hit by fresh selling on Friday, with analysts warning of further volatility ahead as the Treasury Department seeks to offload more than $370bn of new securities over the next three weeks.”
USAGOLD note: The question keeps popping up: Who is going to buy all this U.S. sovereign debt? That which isn’t taken up by foreign governments and private sources will be taken up by the Fed. Already the largest single buyer of Treasury paper, the Fed, according to a Goldman Sachs estimate highlighted at the link above, will buy almost $1 trillion in U.S. government paper in 2021. When it comes to supporting the U.S. government, the central bank is the not-so-subtle elephant in the room.
