2017-02-14bloomberg.com

From Tokyo to Beijing and London, the consensus is clear: few overseas investors want to step into the $13.9 trillion U.S. Treasury market right now. Whether it's the prospect of bigger deficits and more inflation under President Donald Trump or higher interest rates from the Federal Reserve, the world's safest debt market seems less of a sure thing -- particularly after the upswing in yields since November. And then there is Trump's penchant for saber rattling, which has made staying home that much easier.

... any consistent drop-off in foreign demand could have lasting consequences on America's ability to finance itself cheaply, particularly in light of Trump's ambitious plans to boost infrastructure spending, cut taxes and put "America First." The president has singled out Japan and China, the two biggest overseas creditors, as well as Germany, for devaluing their currencies to gain an unfair advantage in trade.



Comments: Be the first to add a comment

add a comment | go to forum thread