Strong Demand for 10-Year U.S. Treasury Notes Signals Investor Confidence
The recent auction of 10-year U.S. Treasury notes challenges the idea that investors are moving away from U.S. government debt in favor of assets like bitcoin and gold.
- Demand for $39 billion in 10-year notes exceeded supply by over 2.5 times, with a yield of 4.421%.
- Primary dealer takedown was only 9%, indicating heavy buying by investors.
Debt Overview
- Total U.S. gross national debt exceeds $36 trillion, representing over 120% of GDP.
- Deficit for 2024 reached $1.8 trillion, expected to rise by $2.4 trillion due to tax cuts.
- Annual cost of servicing the debt stands at $1 trillion.
- Analysts point to bitcoin and gold as potential hedges against the fiscal crisis.