Hefaistos

Government Risk Rises: Credit Markets Face Structural Collapse

Excellent article!
I want to add one component. This week there are some big treasury auctions, and there is a worry there won't be enough demand from foreign investors, leading to higher yields. That's easy to understand given the high dollar rate and the low yields, and the prospect for inflation in not too distant future. Is it likely that the Fed steps in in these upcoming treasury auctions to avoid having higher yields? How would such instant monetization be perceived? Or will they act only on the secondary market?