Hello and welcome to Broconomics. Now in this episode it is extremely hot in the studio and I'm going to be talking about bonds because I tell the most common question that I think I get asked looking through the common bit is because I keep referencing the debt but I don't really kind of go into how the bond market works or anything like that.

And the most common question I get asked is, well, who owns all this debt?

And some variation of, well, how big are these numbers then?

Because, you know, we know the US debt has recently passed 37 trillion, but what the hell is a is a trillion i mean no one's really got an

intuitive understanding of that so what i'm going to do in this episode and i'll try and make it a little

bit more short and condensed uh because it is a bit of a it it's not the most hollywood of stories

the bond market uh so i'll try and keep it tight, but important.

So we do how does the bond market work?

Who actually owns this debt?

Why do they buy it?

How big is actually a trillion?

And, you know, where do we go from here?

A bit of that.

So without further ado, the story all starts with the bond auction.

And it's the US government, I'm going to use the US government for this, rather than the

UK government because the numbers are bigger and a bit more impressive.

And also they kind of dominate because they're, you know, the world's leading currency. They, that, that's where all the action is.

But, you know, processes similar for any other country.

So it all starts with the bond auction.

And for the US Treasury, they basically, you know, put it on their website,

they announced that they're going to be doing an auction, and these happen fairly regularly. Anyone can go on the Treasury website and see what's coming up, so they might say,

you know, look, we're going to be doing a 60 billion issuance of two-year notes, come place

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