While foreign central banks have rapidly liquidated $82 billion in U.S. Treasuries amid the Middle East conflict, according to a FT report, top financial experts are dismissing fears of a market collapse.
A ‘Feared’ Defense Against Bond Vigilantes
While the sudden offloading of U.S. debt by oil-importing nations has raised international alarms, Louis Navellier, founder and chief investment officer of Navellier & Associates, considers the drop largely “insignificant” at this time.
He argues that opportunistic traders looking to capitalize on the nation’s $39 trillion debt load will be stopped in their tracks by the current Treasury leadership.
“Treasury Secretary Scott Bessent is very well respected and even feared around the world, since he helped George Soros make $1 billion on the prediction that the Bank of England would have to unwind its currency peg,” Navellier told Benzinga.
While there are “bond vigilantes” preying on the demographic woes of Japan, Britain, and France, Navellier noted that Bessent is fully expected “to make sure that the bond vigilantes do not successfully attack U.S. Treasury securities.”
The Dollar Remains An ‘Oasis’
Currently, the 10-year Treasury yield has settled at 4.29%. Navellier attributes recent …
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