Demand for US Treasuries Is In Secular Downtrend

The proposition that the Treasury market is supported by deep and robust demand isn’t supported by the data that we watch. Demand has been in a secular downtrend since 2010. The fundamental constant that has buoyed bond prices and suppressed yields for the past 6 years has been shrinking supply, not strong demand. The total bid tendered at Treasury auctions has been in a steadily declining trend since 2010

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