US bonds on the edge as foreign demand and higher yields loom
The Yahoo Finance piece warns that long‑term US yields remain near multi‑decade highs, increasing mortgage and corporate borrowing costs, while Japan—still a major Treasuries holder—faces higher domestic yields and a weaker yen could spur dollar buying that pressures Treasurys further. The resulting higher supply of dollars and potential selling of Treasuries could lift yields if demand falters. The Fed’s FIMA repo facility provides a dollar lifeline to Japan but can’t make US debt more attractive, and signals from Scott Bessent show steps to backstop Treasuries (including doubling long‑term buybacks). The report stresses this is a delicate, evolving risk rather than an already‑crashed scenario—the dangerous conditions haven’t materialized yet.
