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Great explanation. What about the fact that US treasury is issuing more bonds to fund extremely large deficits? How does that play into the equation you descri
by NTDF9 8y ago
Great explanation.
What about the fact that US treasury is issuing more bonds to fund extremely large deficits? How does that play into the equation you described?
Wouldn't so many bonds flood the market with bonds available and thus raise the yield rates on 10-year?
- skybrian 8y agoThe Treasury Department sells a variety of securities. I wasn't able to find anything about how they choose auction amounts, but it would make sense for them to borrow using whatever kind they can get the best rate on, rather than 10-year bonds in particular. If so, the mix would depend on market demand.