I suspect a big input in treasury yields going up is just governance risk and not merely Japan (reverse carry trade), China or other sovereign nations selling treasuries.
Trade wars, tariffs supply chain disruption and anti-democratic policy and other instances of bad/chaotic US governance are like getting sprayed by a skunk. Purchasers of US debt want an increase in the risk premium in exchange for holding their noses.
We touched upon it briefly in our zoom call. Certainly, this is not the lone factor. Just saying it is an input that has some weight. How much weight do you give the perception of good/bad governance on US Treasury yields?
Very interesting Michael.
Forgive me. I am like a broken record:
I suspect a big input in treasury yields going up is just governance risk and not merely Japan (reverse carry trade), China or other sovereign nations selling treasuries.
Trade wars, tariffs supply chain disruption and anti-democratic policy and other instances of bad/chaotic US governance are like getting sprayed by a skunk. Purchasers of US debt want an increase in the risk premium in exchange for holding their noses.
We touched upon it briefly in our zoom call. Certainly, this is not the lone factor. Just saying it is an input that has some weight. How much weight do you give the perception of good/bad governance on US Treasury yields?