The news of no one wanting to lend to the US government is shocking and concerning. Even Japan and Saudi Arabia, the two countries usually the primary buyers of US debt, have decided not to participate in the auction of 30-year bonds recently, even though the interest rate exceeded the 5% threshold. This lack of interest has resulted in the US government having to forcibly sell a quarter of the debt to the largest banks, although by law, they are only obliged to buy 10%. This shows that the US economy is facing severe issues and that the government is struggling to attract investors into its debt market. The cause of this lack of interest in US debt is likely to be a combination of things, including a lack of confidence in the US economy due to rising debt levels and increasing uncertainty over US economic and foreign policy. It could also be due to a lack of liquidity in the market, as investors are wary of taking on additional debt. The US government needs to address these issues to regain investor confidence and attract more buyers of its debt. It needs to reduce its debt levels, restore confidence in its economic and foreign policies, and increase liquidity in the market. If these steps are taken, then it is likely that investors will be more willing to lend to the US government. Until then, the US government is facing an uphill battle to attract investors into its debt market, and this could have severe consequences for its economy in the long run. #news #economy #northamerica #usa
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