Here come the “Marketable Borrowing Estimates,” showing by how much the pile of outstanding marketable Treasury securities will increase.
The economy grew solidly. The debt spiked.
All major categories of spending and investment pulled in the same direction.
Interest payments threatening to eat up half the tax receipts may be the only disciplinary force left to deal with Congress.
China and Brazil shed large portions of their holdings, but the top financial centers loaded up.
Our drunken sailors in Congress better head to the detox.
Volatility. Powell mentioned it too. The 10-year yield is hugely volatile, and the drop over the past few days fits right in. Have a look.
The Spiking 10-Year Treasury Yields Apparently Rattled the Government’s Nerves.
Including $1.56 trillion in Q4 2023 & Q1 2024. Government has gone nuts.
Yield fixes all demand problems. You just have to hit the right number, and the right number today was 5%.