top of page

The U.S. Treasury Auction- Who Is Showing Up?



The U.S. Treasury Auction- Who Is Showing Up
.pdf
Download PDF • 345KB

In a prior perspective piece entitled “International Reserves – Savings gluts can last only so long,” we laid out the foundation for higher interest rates in the United States based on the depletion of foreign FX reserves. Global reserves turned negative on a year-over-year basis in the middle of 2015 (blue-line in the chart below). In spite of this and the strong correlation of foreign treasury holdings (red-line), ten-year treasury yields have remained stubbornly low. Many market pundits have theorized that central bank selling pressure in treasuries will be offset by a “risk-off” trade domestically.


Related Posts

See All

BOND MARKET HISTORYONICS

Merriam-Webster defines the word “histrionic” as overly dramatic or emotional. This is an apt description for both the Federal Reserve and the fixed income market in the first quarter of 2022, and pro

GONE FISHING

As we assess the fixed income landscape going into 2022, it looks quite different than that of the last two years. The title of this newsletter conjures up a sleepy shopkeeper sign signifying a break

When the Rate Spike is Real

TREASURIES LOG THE WORST QUARTER SINCE 1980 The first quarter was largely a continuation of the recovery from the March 2020 lows for many asset classes. The S&P 500 was up 6.17%. The Nasdaq lagged, b

Comments


bottom of page