Macro Insights Weekly - US treasury supply and demand

14 November 2023


  • US bond market has been remarkably volatile lately. In the last five weeks, yields have risen and fallen by nearly 50bps in each direction. Signs of unrest in the world’s largest debt market?
  • The demand/supply dynamic appears precarious.
  • The Fed is cutting its treasuries holding, while the treasury is boosting issuances.
  • But both US and international private sectors are eager buyers of US government debt.
  • Both the nominal and real yields offered by short- and long-term US debt are attractive.
  • Volatility notwithstanding, the US public sector debt remains well-bid.