Investors are worried that Western governments are issuing more bonds than investors can buy. Bond investors across the globe have been particularly jumpy about increases in public-debt supply. Yet the end-buyers of the debt are unlikely to disappear since government deficits automatically create the very savings that are then channeled into financial assets. Ever since, the surge in debt issuance has forced them to buy more Treasurys than they can sell. Eventually, central banks would buy bonds again.

Source: Wall Street Journal November 06, 2023 16:45 UTC