With the USA debt reaching $20T limit soon, USA will have to lift the debt limit and issue more bonds to pay or rollover its debt which will cause interest rates to go up as bond prices move inversely to its interest rates.
Currently, the FED is holding $4.45T of treasuries because of its past QE actions and will have to unwind all these down to $1T soon. The deluge of $3.45T of treasuries will definitely cause bond prices to fall and interest rates to spike up even when the FED unwinds them gradually. This is truly a double whammy for the bond market.
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