The market value of US government bonds has shifted from trading 8% above par (108) in March 2020 to trading 8% below par (92) in December 2022; however, these bonds will mature at par (100), so the current market losses are transitory and will be reversed as bonds approach maturity
factualpending
Speaker
Peter StellaEvidence Quote
“if you look at March 2020 basically the the ratio between the market value of U.S government debt and the par value was about 1.08 so it was about eight percent above par and now it's about eight percent below par”
Source
Debt Death Spirals, Fed's Losses, & Fiscal Theory Of Price Level | Peter Stella & Joseph Wang— Forward GuidanceCreated: 8/10/2026, 10:58:24 PM
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