Despite rock bottom interest rates and record high bond prices, demand for US Treasuries has yet to subside

Jay Soloff

Argonath Financial

Despite rock bottom interest rates and record high bond prices, demand for US Treasuries has yet to subside. According to Bloomberg, investors have submitted $3.4 trillion worth of bids for the $1.1 trillion worth of bonds and notes sold this year so far. The bid-to-cover ratio of 3.06 is the second highest on record. The sky-high demand for US bonds comes from many sources. At least part of it is due to Dodd-Frank regulations that banks hold more high-quality assets. Another driver of bond demand is the relatively high amount of risk coming from geopolitical hot spots across the globe. What's more, the global economy continues to grow at a slow enough pace to keep the world's central banks from pulling back on their easy money policies. Keep in mind, despite all of this, US equities are also setting record highs. (VIEW LINK)


Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter