US Treasuries: Japan Faces $1.1T Hotel California Trap

US Treasury market liquidity constraints trap oversized holders like Japan with $1.1 trillion in bonds against a mere $60 billion repo facility, as Francis Hunt described the system to Michaël van de Poppe on August 27 2026: oversized sellers face an unwritten rule against exits, eliminating price discovery while precedents from the UK gilt crisis 2022 pension funds forced selling and Gulf state swap lines repeat the pattern of forced capital preservation over returns, pushing focus toward Bitcoin as an exit from the expanding debt cycle.