Treasury Market Demand Factors Impact On Bonds and Stocks

Demand for Treasury coupons, as measured by the total bid at each auction remains in a downtrend. When the Trump Treasury sharply reduced supply from late January to the end of February, demand slipped along with it. All the usual suspects who bid for Treasuries did not stick around to bid when there was less supply. Some took a walk or reduced the size of their bid instead of bidding up prices and lowering yields.

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