The U.S. is projected to run an unprecedented fiscal deficit this year due to its efforts to boost the economy and rescue the financial sector. In the past few years, the deficit has been financed by foreign public flows, particularly from China. But many fear that foreign demand for Treasuries could fall in the near future. Will the U.S. be able to continue to meet its financing needs?
WSJ: Foreign Demand For US Securities Rebounds In Feb
Pettis: China Will Keep Buying U.S. Government Debt
Mackenzie: Treasuries Sales Ease Fears Over U.S. Funding
Setser: Reserve Managers Keep Buying Treasuries