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
Demand for US Treasuries Is In Secular Downtrend
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.