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Chart of the Day: Government Bonds Dominate the US Bond Market

Area map showing the composition of the US Bond market by sector from 2001 to 2024.

Contents

Today’s Chart of the Day is from Avantis Investors and shows the weighted percentage of bonds issued by various sectors of the market. You’ll notice that the US government (Treasuries and T-Bills) now issues 50% of all bonds in the US.

If you include the 30% Agency Mortgages, such as Fannie Mae and Freddie Mac (which are both backed by the US government) many analysts would contend that this brings the total to 70% of all bonds.

Add in current and projected budget deficit spending and the total government issue will continue to grow while other sectors dwindle.