America’s Bond-Market Blues
The market for US Treasury securities is one of the world’s largest and most active debt markets, providing investors with a secure stock of value, while helping to lower America’s debt-servicing costs. But the recent dumping of long-term US debt by foreign investors heralds the end of an era of cheap financing for the US.
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BEIJING – The market for United States Treasury securities is one of the world’s largest and most active debt markets, providing investors with a secure stock of value and a reliable income stream, while helping to lower the US government’s debt-servicing costs. But, according to the US Treasury Department, overseas investors sold a record $54.5 billion in long-term US debt in April of this year, with China slashing its holdings by $5.4 billion. This dumping of US government debt by foreign investors heralds the end of an era of cheap financing for the US.