There’s a ‘buyer’s strike’ on U.S. assets as foreign investors can’t stomach huge deficits anymore, analyst warns

• Tepid demand for a 20-year bond auction sent Treasury yields spiking and the dollar tumbling this past week, amid mounting concerns over the federal government’s ability to continue financing massive deficits as Congress looks to add trillions of dollars more in red ink. For Deutsche Bank’s George Saravelos, they’re signs of a “buyer’s strike” among foreign investors.

Foreign investors are starting to shun U.S. assets as massive fiscal and current-account deficits are becoming too much to tolerate...