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The risk to the dollar is a flight to gold causing an decrease in interest of buyers purchasing treasuries, resulting in higher rates paid to buyers of this deb
by kipchak 1y ago
The risk to the dollar is a flight to gold causing an decrease in interest of buyers purchasing treasuries, resulting in higher rates paid to buyers of this debt. To give a sense of scale the US issues something like 1-2 Trillion in new treasuries a year, which is roughly the value of all 8,133.46 tons if sold at current market price.
For example a 2% increase in rate on 1T in 30Y treasury issuance over 30 years is $600B.