Jul. 31 at 2:44 AM
$SGOV $TLT $SHY $IEF BND
FWIW, I would argue that the catalyst for higher long dated treasury yields in the past 24 hours has far less to do with the federal reserve and the hawkish dissents than it does the
$95 billion supplemental with
$75 billion ear marked for munitions. What’s driving treasury yields higher isn’t economic fundamentals but supply concerns. Especially as the government tries to compete with private sector borrowers, tapping the capital markets to fund their AI expenditure. IG borrowers have already tapped the mkt for
$1.3t in the first half of the year. the real “new paradigm” is the Govt being crowded out by private sector.
