Who is Going to Buy Our Debt?

<p class="MsoNormal">The Chinese have been reducing their holdings of U.S. Treasury securities. The Federal Reserve has stopped adding huge amounts to its balance sheet. However, Washington will still have to borrow <em>trillions</em> of dollars over the next decade. Will we be able to finance at 4% if the Chinese and the Fed are on the sideline? What will individual U.S. investors need to see before they go back to bonds? 5% 6% or higher? It seems higher interest rates are here to stay, but just how high is <em>high</em>?</p> <p class="MsoNormal">In this week’s Trading Perspectives, Sam and John discuss longer-term interest rates in the U.S. and where they think they will stop. What does the past suggest? What is their gut telling them?</p>