A closer look at the issuance structure of Treasury securities
For most of the 2010s, there was not much volatility in interest rates. The short end was anchored to the Fed’s zero interest rate policy. The long end moved a little bit with the tides of the QE and QT cycle. But overall, it was a boring time for bond investors and equity investors were busy with other risk factors. So far, the 2020s have been the complete opposite. The volatility of interest rates has surged, which has not only had profound consequences for bond prices. It has also become a major stock market driver. This is amplified by the fact that the US stock market is dominated by long duration growth stocks like never before. The odds favor that interest rate volatility will stay elevated for a while. Interest rates will therefore continue play an important role in the price discovery of all assets. The US Treasury is the most important borrower in the world. What happens in the US Treasury market sets the pace for the world economy. It’s therefore useful to monitor this marke
Explore this link on the map →