US secures status as most reliable borrower

The US is still recognized as one the most reliable and above all sought-after borrowers. Indeed, the US issues and sells debt securities in jaw-dropping volumes. This is the only country in the world where the turnover of Treasuries exceeds $40 billion per month. Global investors are keen to profit from buying and selling such securities as demand for US bonds has always been buoyant. At present, investors are poised to sell off the US debt. Over 15 recent months, US bonds have been an integral part in investment portfolios of leading central banks. Some of central banks prefer to sell Treasuries while others are willing to buy them. Japan became the largest holder of the US debt in 2019. The country beat out China which used to hold the biggest amount of US bonds earlier. Foreign investors are not spooked by high hedging costs. So, they are still attracted by steady yields of US debt securities. Meanwhile, the global debt market is estimated at roughly $11 trillion. Interestingly, while yields of other debt securities are being on the negative territory, yields of US Treasuries are always in the black.