So what I've gathered lately from the market is that US treasury bonds have been selling poorly and thus the yield has been going up on the ten year bond. Something about investors won't buy it unless it has a higher interest rate because fear of inflation. Now that we're on the verge of signing in a 1.9 trillion stimulus bill, I have a some questions about the effect on the bond market.
- When does the US treasury sell the 1.9 trillion in bonds to pay for it?
- Does it do it in one massive sale? What types of bonds does it sell (2 year, 5 year, 10 year)?
- If bonds are already selling poorly, then wouldn't a massive influx of bonds on the market make the yield situation even worse?
- Are investors/banks prepared to buy it all up? Or will the federal reserve step in and buy the remainder?
- Is it therefore possible that the signing of the stimulus will actually hurt stocks in the short term due to bond market/yield fluctuations?
- Can anyone explain what happened with US treasury/bonds during the 2 trillion stimulus last year? Or the 900 billion stimulus earlier this year?
Thanks for any insight guys! New to the bond side of the market
Submitted March 09, 2021 at 10:12PM by solscend https://ift.tt/38ta4Ma
