According to The Wall Street Journal, longer-term Treasury yields moved lower Monday as oil prices declined and markets considered the possibility of additional Treasury action to support the government bond market.
The Treasury recently announced plans to increase the size of its longer-term bond buybacks, with operations targeting securities with maturities of 10 years or more. Bond buybacks can help improve liquidity by allowing the Treasury to repurchase older, less actively traded securities.
The moves come after long-term borrowing costs climbed significantly in recent weeks. Markets are continuing to balance several factors influencing yields, including inflation expectations, federal borrowing needs, energy prices, economic growth and expectations for Federal Reserve policy.
This week also brings additional information for fixed-income markets, including economic data and Fed communication from Jackson Hole.
The movement is another example of how Treasury issuance, fiscal policy, inflation expectations and monetary policy can interact across the yield curve.
#FixedIncome #Bonds #Treasuries #Markets #FederalReserve #Finance #Investing
Source: Wall Street Journal
The views stated are not necessarily the opinion of Cetera Wealth Services, LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Bonds - The return and principal value of bonds fluctuate with changes in market conditions. If bonds are not held to maturity, they may be worth more or less than their original value. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.