Quoth the Raven
· QTR’s Fringe Finance
· May 20, 2026 at 10:17
| Read on Substack ↗
Summary
Foreign governments are actively selling U.S. Treasuries, with China leading the selloff, signaling a loss of confidence in America's fiscal and monetary policy. The author warns that once systemic confidence erodes, markets can unravel faster than policymakers anticipate, implying upward pressure on Treasury yields and potential dollar weakness.
•Foreign governments are dumping U.S. Treasuries, and China is leading the way.
•The bond market has already been 'calling bullshit on America’s fiscal and monetary policy' before the foreign selling intensified.
•The author argues that once confidence in the system itself erodes, conditions can 'unravel far faster than policymakers would like to admit'.