This is going to be boring for regular readers of this blog. But if I post it often enough maybe someone will be able to share it with someone that can make a difference.
The Long Bond is what most pension and insurance funds, not to mention sovereign wealth funds and sovereign foreign reserves, are stuffed with.
As a corollary, I am not convinced Japan can sell their holdings of US paper in order to raise funds for reconstruction. If they did, they would likely further worsen the value of the ocean of US paper held globally.
In my opinion, Japan can only float even more sovereign debt…. thus going into head-to-head competition with all other Sovereigns requiring financing… $10Trillion may be a conservative estimate for Western funding needs this year.