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“The bond market is often seen as the boring sibling to the stock market,” said Robin Wigglesworth. “I think that's completely wrong. It is the bedrock to the entire financial system.”
Demand for short-term bonds has fallen. Demand for longer-term bonds is still strong.
Some have stopped buying, others have sold off holdings, but U.S. government bonds are still more attractive than other alternatives.
They’re borrowing to finance projects like new schools, roads and bridges.
With fears of tariffs, government debt, and inflation raising longer-term interest rates, shorter-term borrowing can look more attractive.
Under current debt projections, economists cannot even model out a functioning long-term economy.
Just a few short months ago, investors weren’t really showing up for bond auctions.
It has to do with what he considers a troubling trend in U.S. government debt.
To attract buyers for the bonds that will finance that deficit, the federal government will have to pay higher interest rates.
Foreigners account for massive portions of bond and stock ownership. Some experts say they fear the economic impact of White House policies.