Treasuries shunned Indeed, investors shunned Treasuries in recent sessions as inflationary pressures increase the likelihood of an earlier tapering of bond purchases.
Monday’s auction of two-year Treasuries had a bid-to-cover ratio of just 2.28 – the lowest since December 2008. Because of this poor demand, the US Treasury had to offer a yield of 0.31% – the highest since March 2020.
“It may be a sign that the market is beginning to price Fed’s tightening monetary policies and the risk coming from the debt ceiling saga,” added Jakobsen.
Inflation comes under the spotlight on Friday as the Federal Reserve’s favoured measure – Personal Consumption Expenditures – is published. In July, the headline rate of annual inflation under this measure hit 4.2% and the consensus forecast for August’s data is for a similar reading. 國債避而遠之 事實上,投資者在最近幾個交易日避開美國國債,因為通脹壓力增加了提前縮減債券購買的可能性。