The level of demand will be an important omen for a Treasury looking at another $1 trillion year of borrowing to finance Trump’s $1.5 trillion tax cut. And it leaves China’s Xi Jinping, Japan’s Shinzo Abe and Trump’s other Asian bankers feeling buyer’s remorse. Trump takes for granted that Xi, Abe and their Asian peers will dutifully, if not happily, hoard more Treasuries. Even Xi, China’s most powerful leader in generations, might see his legacy marred by such a humiliating loss. How enthusiastically Asia participates in next week’s Treasury sales may gauge where Trump’s bankers stand.

Source: Forbes January 31, 2019 05:37 UTC