The US is indisputably acknowledged to be the most reliable and welcome debtor in the world. The US debt market has always surpassed others in terms of buy and sell volumes. It is the only country in the world where the turnover of its Treasuries is over $40 billion per month. Global investors have always included US bonds in portfolios. However, they have been selling off US debt securities for 15 months in a row. Certainly, some central banks are still poised to buy US bonds. Japan has been the largest foreign owner of the US debt. At the same time, China ventured into an aggressive reduction of its US Treasury holdings. Interestingly, foreign investors are not scared away by high hedging costs. Most investors are attracted by steady high yields of US government securities. At present, the global debt market is measured at almost $11 trillion. Meanwhile, the lion’s share of the global debt, including Japan’s bond market, is making negative yields. Therefore, yields of US Treasuries still remain in the black.
