Barron’s: “Bond Yields Are the Highest in a Decade. 4 Reasons Behind the Surge.”By datatrekresearch in IN THE NEWS
Excerpt from Barron's quoting DataTrek co-founder Nick Colas:
.... "The Fed’s effort to reduce its balance sheet is also a factor, as it has the same effect as an increase interest rates. The central bank has a goal of reducing its Treasury and agency debt holdings by $95 billion a month, although it has largely fallen short so far. Last week’s cut of $62.5 billion, though, was the largest weekly decrease in its balance sheet since early April. Its balance of $8.146 trillion is also the lowest since July 7, 2021.
“While prior weeks of exceptional Fed Balance sheet reduction this year have not tended to have much of an impact on yields, last week’s large drop in holdings seems to have hit home,” wrote DataTrek Research co-founder Nicholas Colas"....
Full article here on Barron's!