I was just reading the above article and I noticed something not communicated a lot, which is that central banks of China, Brazil, Saudi Arabia, Japan and other major economies have significantly reduced their holding of US debt
At the same time the fed is also reducing their holding due to QT … those two in place are adding a huge upward pressure on US bond yield and with a government that has no way to reduce its spending and with so much debt is maturing next year, bond yield is only going to go up.
this of course will lead US institutional investors to dump their stock holding to the bonds market.
if I'm not mistaken this seems like the only reasonable way forward, am I missing something here, please if possible refrain from the typical BEAR / BULL discussion I'm genuinely asking for arguments supporting bond yield not continuing its free fall.
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