Hefaistos

Bond Yields Are Bouncing

Thanks, excellent summary!
It will be an interesting week with big treasury auctions. It might start to make the market concerned about the borrowing implications of the stimulus package. THere is some worry about foreign powers not being too interested in buying treasuries when
a. dollar is high and expected to drop, substantial currency risk
b. rates are so low, meaning substantial interest rate risk

On the other hand, maybe the FED will appear as a buyer at the auctions? Instant monetizing.