Former IMF Official Warns of Potential US Treasury Market Crisis

A former official from the International Monetary Fund (IMF) has raised alarms about the current state of the US Treasury market. According to NS3.AI, despite recent interest rate cuts by the Federal Reserve, long-term bond yields have remained elevated. This situation is compounded by the US government's increased reliance on short-term borrowing, which has not resulted in the anticipated decrease in yields. Additionally, there is a noticeable decline in foreign demand for US debt, particularly from China. Reports suggest that Chinese banks have been instructed to reduce their exposure to US Treasuries, which could signal a looming crisis in both the bond and dollar markets.