Time to Look at Foreign Demand for the Incredibly Ballooning U.S. National Debt

July 19, 2023

by Wolf Richter Wolf Street

As China unloaded Treasury securities and Japan propped up the yen, other countries loaded up.

Who is buying the ballooning US government debt that has now reached $33.5 trillion? That’s on everyone’s mind. For now, there is way too much demand for long-term Treasury securities, or else the 10-year yield wouldn’t be 3.8%, but 6.8%, and the 30-year yield would be further north. But maybe someday yields will have to rise to lure more buyers. Yield solves all demand issues. If you can’t sell them at 5%, try 5.1%. Just about anything will sell if the yield is high enough. That’s why even junk bonds find eager buyers. But we’re not there yet with Treasuries.