Ambrose Evans-Pritchard has an interesting piece in today’s Daily Telegraph discussing how US bonds have fallen out of favour with Asia’s big guns, Japan and China, who together hold 23% of America’s federal debt.
It follows on from Masaharu Nakagawa, finance chief of the Democratic Party of Japan (DPJ), comments to the BBC that his country should not purchase any more US debt unless issued in yen as “Samurai” bonds. While China suspects that Washington is engineering a stealth default on America’s debt through quantitative easing.
Click here for Evans-Pritchard’s analysis of the consequences if “Asia’s leaders give free rein to frustrations and crater the US bond market”.
