We are living in a world where central banks are net sellers of treasuries, said Russell Napier of the Electronic Research Interchange (ERIC).
“The central bankers do not have to sell anything to buy treasuries and fund the government. They print something,” said Napier.
I am worried about a world where something has to be liquidated to fund the government, he said.
“For my entire investment career the US government has been primarily funded by foreign and local central banks,” added Napier.
Talking about the US bond yield, he said that we are quite close to the peak on the US bond yield.
"It’s an incredibly attractive level for many investors all over the planet obviously mainly due to the incredibly low level of yields in Japan and euro zone and therefore, it begin to attract investment,” said Napier.