Richard Baldwin: Over $35 trillion in U.S. government debt drives liquidity in bond market

Richard Baldwin: Over $35 trillion in U.S. government debt drives liquidity in bond market
U.S. debt scale boosts bond liquidity

Richard Baldwin highlights that there is now over $35 trillion in outstanding U.S. government debt, which he describes as widely considered safe.

He observes that the market for U.S. bonds is very liquid due to this scale, whereas other assets do not approach this level of liquidity.

Baldwin previously reported that surging bond yields have fueled debate over the timing of the move and raised doubts about prospects for deficit reduction, referencing Greg Ip's analysis in a recent article. He has also noted that global trade grew more open in 2025 despite record U.S. deficits and strong Chinese exports, as detailed in an earlier piece.

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