I don’t want to set up a chart post with a strawman argument that posits a group of hypothetical investors beset with incredulity about Japan’s sudden penchant for selling US debt, but I’m going to do it anyway.
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It seems like a lot of folks are confused about why Japanese investors are no longer hungry for America’s debt. If you’re incredulous, have a look at the following chart that shows the timing of last year’s buying and the subsequent trajectory of Treasury yields. Then, after you’ve had a look, ask yourself this: what would you do if you were in that situation and you had to mark your book to market?
Via BofAML
