Markets are starting to wake up the idea that rates really will stay higher for longer. And it is not just The Fed that is driving rates up. The U.S. government is issuing more debt and plans to issue much more in the future to pay for entitlements. In the meantime, foreign buyers are losing their appetite for U.S. bonds. This figure from Apollo's chief economist Torsten Slok shows a decline in foreign ownership in U.S. bonds since 2015. This suggests bond yields are not going down anytime soon.
Source: Apollo Academy
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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