Buyers' strike expands in bonds

by@business

Summary

A significant buyers' strike is taking hold in the bond market as recent reports highlight weaker foreign demand for U.S. Treasury bills and bonds, exacerbating concerns over elevated government borrowing and persistent inflation risks. This lack of interest has contributed to weak demand at recent debt auctions, resulting in higher Treasury yields and a growing selloff in bonds.

Analysis

Market demand: Recent reporting indicates weaker foreign demand for U.S. Treasury bills and bonds, consistent with concerns about an expanding buyers’ strike. Treasury market: The pressure reflects broader unease about elevated government borrowing, persistent inflation risks, and volatility across the U.S. Treasury market. Auction conditions: Weak demand at recent debt auctions has contributed to higher Treasury yields and intensified the bond selloff.

Categories

macro

Related sources

View Original Tweet