The ugly setup is that the Fed can’t control the whole equation. If inflation stays hot, cutting rates gets harder. If foreign buyers keep reducing Treasury exposure, Washington has to offer higher yields to attract replacement buyers. Recent reporting already has the 10-year near 5% and long-term borrowing costs under heavy scrutiny.
This is excellent.
The Fed’s Warsh has no good choices at the September FOMC.
40 years of irresponsible spending in government is all coming home to roost.
There are no longer any good options for the Fed or Treasury: pic.twitter.com/YNUMCW0kwv
— QE Infinity (@StealthQE4) September 6, 2026
Foreign central banks are selling Treasuries while America borrows to fight another war:
Bessent won't like this… Foreign central banks are dumping USTs.
– $190B since the war began
– $443B since the start of 2025The longer this war drags on, the more countries are forced to sell dollar reserves to defend their currencies.
Every Treasury sold adds pressure to… pic.twitter.com/XKOczfDKr7
— Lukas Ekwueme (@ekwufinance) September 6, 2026
Over the next 7 years, China will dump all of their US Treasury reserves and replace them with Gold.
We are moving into a hard money world. US Treasuries are trash. pic.twitter.com/ybqkm5nGCa
— Fred Krueger (@dotkrueger) September 6, 2026
The Fed just started printing again.
After two years of shrinking its balance sheet, the Fed hit the brakes on QT and turned it back up. Total assets bottomed near $6.5 trillion and are rising again.
Money is the only thing that moves inflation, so forget the tariff and energy… pic.twitter.com/Wyg0xUkeoP
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) September 6, 2026
Japan just had its largest monthly reserve decline ever
Japan’s reserves fell $79.6 billion in August after record yen-buying intervention. Reuters says the operation involved selling foreign securities, mainly U.S. Treasuries, while Japan spent ¥15.4 trillion ($98.7 billion) supporting the yen.
U.S. 10-year yield approaches 4.8%
https://www.reuters.com/world/china/global-markets-global-markets-2026-09-01/
The 10-year reached 4.798% intraday, its highest level since January 2025, during a five-session run of rising yields. Foreign selling isn’t the only driver, but the Treasury market is already under pressure from inflation, deficits and heavy issuance.