/biz/ - Business & Finance

>>57134457
If you think the more you know the better you'll be in the market then don't bother. The more you know the more you become a bear like me and bears make less money.

>>57134479
The reason why the private sector is picking up the slack is because the foreign purchases were actually adding risk to the market. How so? Foreign purchases were increasing the amount held that could dump on private sector. As the share of foreign holdings decrease, the private sector sees it as less risky because they are not as easily dumped on. I would agree that it is not really sustainable with current federal government issuance, but the issuance is up to the federal government and they can simply issue less if yields get higher than they like. Yellen recently announced that they are going to issue fewer coupons next year and increase the amount of bills. This means that they want long term yields such as the 10 year to decrease next year which makes sense because Biden is up for re-eleciton. In response, the private sector gobbled up more 10 year while the rates were "high" since if less coupons are issued then usually longer-term yields drop. The drop in the 10 year was not all just because the FED said they are thinking of cutting fed funds rate.

Why does this confuse /biz/?