Investment Strategy - BlackRock favors European government bonds over US Treasuries [1]

US Debt & National Security - US national debt is seen as a significant threat to national security, potentially squeezing the discretionary defense budget [2][3] - The US is expected to spend $90 billion more on interest payments than on defense in 2024, marking a critical tipping point [4] - Increased defense spending by $2 billion this year and $150 billion over the next decade is projected due to recent tax and spending legislation [4] - The law will boost interest costs by $700 billion [4] - Adversaries like Russia and China may view US debt levels as a vulnerability [5] International Implications - China, a large foreign holder of US treasuries, has been steadily reducing its holdings [6] - Japan holds over $1 trillion worth of US debt, the most of any foreign country [6] - Reworking global trade relationships could impact international demand for treasuries and the US dollar [7][9] - Tariffs announced with Japan speak to the leverage that Japanese investors may have in trade talks [8] Potential Solutions & Challenges - Addressing the deficit requires a combination of spending cuts, tax increases, and a rainy day fund [11] - Solving the problem solely through tax revenue would require a 30% tax increase, while solving it solely through spending cuts would require a 25% spending cut [12] - Political divide is considered a major threat, potentially hindering efforts to address the debt issue [13]

🇺🇸 LATEST: Arthur Hayes argues US banks adopting stablecoins can provide $6.8 trillion of buying power for US Treasuries.He sees this as "debt monetization dressed in Ethereum drag" and advises to go long Bitcoin. https://t.co/xeSJnXclVf ...

Investment Strategy - South Korea's sovereign wealth fund, valued at $206.5 billion, maintains US Treasuries as a core holding [1] - The fund remains confident in US Treasuries despite recent market volatility [1]

US Treasuries fall, trimming their weekly advance https://t.co/ba8XjsotCe ...

All right. Well, even with the bid for treasuries and the US dollar today, Bank of America's new global fund manager survey sees falling demand for US assets, it also finds investors are more underweight the dollar than they've been in two decades. Our next guest sees this as a potential game-changing moment for the greenback.Peter Bookar is the chief investment officer at Blekeley Financial Group. He's also a CNBC contributor. Peter, great to have you with us.you know, with the dollar with the spade of dol ...

Market Anomalies - Historically, the dollar index increases when the S&P 500 declines by more than 10%, but recently the dollar decreased while the S&P 500 fell almost 20% [1] - Typically, the 10-year Treasury yield decreases following the first Federal Reserve rate cut, but this time it increased, and the yield curve is steepening [2] US Treasury Market & Debt - The US faces an unsustainable interest expense due to a $21 trillion budget deficit and persistent interest rates [3] - The average coupon on Treasuries has risen from below 2% to nearly 4% [3][4] - Maturing bonds issued in 2008, 2009, and even 2019 with coupons as low as 025% are being replaced with bonds at 425%, a 400 basis points increase [4][5] - The long-term Treasury bond is losing its status as a reliable flight to quality asset, not responding as expected to lower interest rates or the current 25% inflation rate [5] Inflation Outlook - Near-term inflation is likely to rise, as the cumulative headline CPI rolling off from a year ago was 01%, while the most recent CPI was 018% [6] US National Debt Concerns - The US national debt is rapidly approaching $37 trillion, requiring innovative solutions [7]