Weekly Market Commentary - The Debt Math, Explained

There’s been no shortage of Treasury market headlines lately. Higher oil prices, geopolitical uncertainty, weak Treasury auctions, and monetary policy changes and expectations have all played a part in driving yields to multi-decade highs (especially the long end). Rising rates and rapid Treasury refinancing are increasing interest costs and further tightening Washington’s already limited fiscal flexibility, and Treasury has taken note. But while Treasury buybacks can improve market liquidity, their limited scale cannot offset growing supply or persistent inflation concerns. Several warning signs are emerging, although current conditions still fall short of a full-fledged Treasury market crisis. - Click here to continue.