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Deluge of new US bond sales to test markets’ nerves – Sydney Morning Herald
The tug of war between financial market hawks and doves is likely to resume this week as an avalanche of US Treasury bond sales begins.
Whats already apparent is that the US economy, aided by the massive stimulus programs nearly $US5 trillion so far is rebounding from the pandemic faster than anyone, including the Fed, expected. Analysts forecasts are for growth approaching 6 per cent this year, with some forecasts materially higher.
For the bond market hawks, that growth confirms their conviction that there will be a surge in inflation beyond the 2 per cent, on average, that the Fed is comfortable with. They are convinced a break-out…
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