Bond market’s breaking point? It’s not $35tn: Robert Burgess

Bond market’s breaking point? It’s not $35tn: Robert Burgess

Despite concerns about government debt, America’s creditors remain confident.
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Despite concerns about the high level of US government debt, America's creditors remain confident. Recent Treasury auctions saw strong demand, with bids totalling 2.5 times the amount offered. The US economy's overall deleveraging since 2008 and a substantial increase in household net worth underpin this confidence. Additionally, ample global money supply and attractive bond yields drive continued foreign investment. The bond market views US debt as manageable and well-supported by the country's wealth.

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By Robert Burgess

Everyone is worried about the excessively high level of US government debt. Everyone, that is, except America's creditors.

___STEADY_PAYWALL___

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