With the U.S. projected to borrow $2 trillion yearly for the next decade, the Treasury Department will need to sell a lot more bonds to make up for the deficit.
WSJ’s Dion Rabouin explains what it means for the stock market.
Photo illustration: Noah FriedmanIn times of war and conflict, investors have long piled into Treasury bonds and other safe-haven assets, bringing interest rates down.
But in today’s disintegrating geopolitical environment, where hot spots around the world threaten to upend the supply of key commodities, it’s becoming harder for investors to book their flights to safety.
That helps explain why bond yields have risen recently—and may stay high.
Persons:
WSJ’s Dion Rabouin, Noah Friedman
Organizations:
U.S, Treasury Department