Foreigners comprise an important source of buying in the US sovereign and corporate bond markets. In March and April, they bought some corporate bonds but massively sold off Treasury notes and bonds. The vacuum was filled by the Fed, whose … Continued
For first time in over four years, the 10-year Treasury rate surpasses three percent, only to raise the possibility that this is as high as it is going to go at least in the short term. After several quarters of … Continued
Mediocre demand for Wednesday’s auction of $24 billion in 10-year Treasury notes probably reflects worries over rising deficit spending. In that auction, yields obviously were not attractive enough to entice aggressive buying. Ten-year yields ended the session up eight basis … Continued
The Treasury’s Treasury International Capital System data contain a treasure trove of useful information as relates to flows of money into and out of the U.S for purchases and sales of U.S. securities. On this post, we will deal with … Continued
The S&P 500 large cap index was flat in March. Foreigners only purchased $876 million worth of U.S. stocks in that month. Of late, they have been more of a tailwind than a headwind. The 12-month rolling total of foreign … Continued
Last week when the Federal Open Market Committee (FOMC) met, market participants were divided as to whether or not the Fed would raise rates. Most economists expected a hike, as did the short end of the yield curve; two-year Treasury … Continued
In discussing the dynamics behind the U.S. bond market early this week, an important variable got left out. The chart below plots the budget situation of the U.S. government against issuance by the Treasury of notes and bonds. This gives … Continued