Financial Times/Gillian Tett/10-20-2022
“This month, global investors have watched the wild gyrations of gilts — and British politicians — with mounting horror. But now that UK bond markets seem calmer — if not UK politics — investors should peek look across the Atlantic at the unfolding story in the $23.5tn world of American government bonds.”
USAGOLD note: Tett explores the ramifications of a Treasuries market long on supply and short of buyers……What happens next? Without some necessary reforms, as she sees it, the recent turmoil in the UK could serve as a “prologue to a much bigger American market drama.”
Sources: St. Louis Federal Reserve [FRED], Federal Reserve Bank of Dallas
