EconomicPolicyJournal.com: Will A Near $2 Trillion Treasury "Bond Demand Gap" Develop in 2021?
Thursday, December 31, 2020 Will A Near $2 Trillion Treasury "Bond Demand Gap" Develop in 2021? The US Treasury Department is set to flood the market next year with a tsunami of long-term bonds. The Treasury plans to issue trillions of dollars in new Treasury securities with maturities of greater than one year. The big question is: Who is going to buy the securities? J.P. Morgan calculates that even after the major planned 2021 Federal Reserve Treasury bond-buying, $1.8 in additional supply will remain. This will mean a major "bond demand gap" at current interest rate levels. “When we ad...
Source: economicpolicyjournal.com