Debt Ceiling Bond Supply Shortage
The looming debt ceiling battle is likely to push US bond yields down further due to a shortage of US government bonds.
Too little corroboration in the last 3 days to call a trend (7 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"The yield on the 10-year U.S. Treasury fell by 2 basis points to 4.54% from 4.559%."
"The yield on the 10-year U.S. Treasury fell by 1 basis point to 4.553% from 4.568%."
"Inverted yield curves tend to precede recessions with roughly a 12 to 18-month lag, and the current inversion has been persistent enough to take seriously."
"T-notes are climbing today on the heels of a -6% plunge in crude oil prices to a 2-week low, which eases inflation expectations. The 10-year breakeven inflation rate fell to a 1-week low of 2.417% today."
"The yield on the 10-year U.S. Treasury fell by 4 basis points to 4.401% from 4.438%."
"Global bond yields fell from their highs today and turned lower on news of a possible end to the war in Iran. Bond yields had risen on concerns that soaring energy prices from the Iran war would stoke inflation."
"The yield on the 10-year U.S. Treasury declined by 2 basis points to 4.179% from 4.203%."
"US Treasury yields traded lower in Tokyo after ratings agency Fitch lowered the country’s top credit rating."
"UBS has previously predicted bonds would rally if the debt ceiling doesn't get resolved, as this would most likely lead to economic contraction and investors would still see US debt as a relatively safe haven."
"The shortage of US government bonds will likely push yields down even further (yields fall as bond prices rise), resulting in a further easing in financial conditions."