08.16.2023 - By John Norris
The Chinese have been reducing their holdings of U.S. Treasury securities. The Federal Reserve has stopped adding huge amounts to its balance sheet. However, Washington will still have to borrow trillions of dollars over the next decade. Will we be able to finance at 4% if the Chinese and the Fed are on the sideline? What will individual U.S. investors need to see before they go back to bonds? 5% 6% or higher? It seems higher interest rates are here to stay, but just how high is high? In this week’s Trading Perspectives, Sam and John discuss longer-term interest rates in the U.S. and where they think they will stop. What does the past suggest? What is their gut telling them?