U.S. Treasury's Plan to Increase Buyback Volumes Partially Quells Investor Concerns
Dow Jones
Aug 20
0517 GMT - Long-duration U.S. government bond yields moved lower Wednesday, suggesting that the Treasury's decision to buy back more of its long debt has had an effect in partially quelling investors' anxieties, says Russell Investments' BeiChen Lin. Russell's trading team, however, notes that demand for the Treasury's 20-year bond auction was among the weakest since the February refunding, meaning that investors still have some lingering questions about holding long-duration bonds. "Although we believe the near-term run-up in inflation to be temporary, the market appears to still be wondering how the Federal Reserve will get inflation sustainably back down to the 2% objective," the head of Canadian investment strategy says.
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