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.
Treasury Market Demand Factors Impact On Bonds and Stocks
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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.