A straightforward report with the headline “Nobody Wants U.S. Treasury Bonds,” appeared on the venture capital-type “news platform” SEMAFOR on Nov. 28, and was reprinted by Yahoo News. It describes “the worst stretch for U.S. government bonds since the Civil War. The government keeps borrowing to cover large budget deficits, while once-reliable buyers of that debt, both at home and abroad, have pulled back.” Despite “the steepest yields since 2007…. Auctions of fresh bonds that were once routine are now going terribly…. The longest-dated Treasury bonds are in a bear market worse than the dot-com bust and almost as bad as 2008.”
A decade ago, China and Japan combined held 22% of U.S. Treasury debt; now they hold 7%. Major banks have also pulled back because they have suffered large unrealized losses, primarily on Treasuries.
