'The U.S. is not the only game in town anymore' — Treasury debt faces more competition from higher-yielding bonds overseas than in recent decades - Fortune
'The U.S. is not the only game in town anymore' — Treasury debt faces more competition from higher-yielding bonds overseas than in recent decades - Fortune
Source: Fortune
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DW NOTE
The Treasury is discovering what happens when you run trillion-dollar deficits during a global supply shock: buyers demand compensation. Foreign sovereigns can now earn similar yields at home without the currency risk or the political theatre of Washington's debt ceiling kabuki. When German bunds yield within 50 basis points of Treasuries and don't require you to hold dollars through a contested election, the "risk-free rate" starts looking like it has risk after all.