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Wolfe flags fiscal pressures facing Treasury ahead of borrowing outlook release
['Scott Kanowsky', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
Investing.com - Long-dated U.S. Treasury yields spiked last week following comments from Federal Reserve Chair Kevin Warsh which sparked concerns that the central bank may be falling behind in its attempt to corral energy-driven inflation pressures.
"But the higher long end of the yield curve is an unwelcome development both for markets and for the federal fiscal outlook."
They said they were "somewhat skeptical" that the Treasury Department will "even signal an increase in coupon issuance at the long end next year, which would risk exacerbating the recent bear steepening."
Consensus estimates see the Treasury Department holding coupon auction sizes flat in the upcoming QRA, although a debate remains around whether a forecast on future coupon increases will be provided.
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