Bloomberg/Tracy Alloway/10-3-2022
“In fact, they say, all of the three main buyers for US government debt — commercial banks, foreign governments and of course the Federal Reserve itself — appear to have stepped away from the market. While some of the retreat is to be expected as the US central bank tapers its balance sheet, the scale of the shift in appetite is still noteworthy, they write.”
USAGOLD note: That lack of demand worries a lot of Wall Streeters. It is likely to worry the Fed as well as it sits on the sidelines watching rates ratchet slowly but inexorably higher. If anything is going to precipitate a Bank of England-style abrupt turnaround, it will be when the government is offering more in Treasury paper than the market is willing to absorb. JP Morgan is also worried about the ability of the markets to absorb mortgage paper.
The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.