WILL ANYONE BUY US TREASURY BONDS/NOTES WHEN THERE ARE BETTER ALTERNATIVES IN A ROARING ECONOMY?


The plain and perhaps scary answer is, probably not in the amounts that the government will need to sell to finance the burgeoning deficits. This will mean that yields on the securities offered by the US TREASURY will be higher, and higher at that time in order to attract investors.

What is less and less buyers show up...there is only one answer...higher yields...

So it is rather interesting to consider that when the economy turns, the government bonds will do worse.

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