US Debt on Pace to Grow $1 Trillion in One Month; China’s Treasury Holdings Fell Again.

This is not sustainable.

The US added – checks notes – $275 billion in debt in, uh, ONE DAY

Total US debt is now $33.442 trillion, hit $33 trillion just 2 weeks ago, and on pace to rise by $1 trillion in 1 month.

WTF is going onhttps://t.co/tOrhqmkFXL pic.twitter.com/w3qnBAIfLh

— zerohedge (@zerohedge) October 3, 2023

Another month, another decline.

China's Treasury holdings fell again.

Now standing at $493B below its peak levels. pic.twitter.com/31tFF9Mdaj

— Otavio (Tavi) Costa (@TaviCosta) October 3, 2023

US Treasury Yields…
-3-Month: 5.62% (highest since Jan '01)
-1-Year: 5.49% (highest since Dec '00)
-2-Year: 5.15% (highest since Jul '06)
-5-Year: 4.80% (highest since Jul '07)
-10-Year: 4.81% (highest since Aug '07)
-30-Year: 4.95% (highest since Sep '07) pic.twitter.com/JNz7b7QBZx

— Charlie Bilello (@charliebilello) October 4, 2023

Société Générale’s sharp-tongued strategist Albert Edwards warns of a 1987-style event for stock markets if the bond market does not cool off

Bond Selloff Jeopardizes Hopes for Soft Economic Landing

Growth prospects and concerns over mounting government debt are driving long-term interest rates to a 16-year high, threatening economic stability. The Federal Reserve’s attempts to address inflation with higher short-term rates have been overshadowed by this unexpected surge. The 10-year Treasury note yield has reached levels unseen since the 2007 crisis, causing significant stock market declines. If these elevated borrowing costs persist, they could hinder global and U.S. economic momentum, leaving experts puzzled over the precise causes of this rapid ascent.