From Yahoo Finance: 2025-05-24 15:22:00

Tepid demand for a 20-year bond auction caused Treasury yields to rise and the dollar to fall, reflecting concerns over the government’s ability to manage deficits. Foreign investors, led by George Saravelos of Deutsche Bank, are avoiding U.S. assets due to fiscal risks. The House passed legislation with tax cuts and increased spending, adding trillions to budget deficits. Saravelos suggests tighter fiscal policy or cheaper debt to attract foreign investors. Japan’s bond market turmoil and the U.S. Treasury market’s reliance on Japanese investors add to the challenges. China reduced its Treasury bonds holdings, affecting market dynamics.



Read more at Yahoo Finance: There’s a ‘buyer’s strike’ on U.S. assets as foreign investors can’t stomach huge deficits anymore, analyst warns