Barclays Says Long-Term US Treasury Yields May Stay Near Multi-Decade Highs
JH Kim
Summary
- Barclays said rising reliance on price-sensitive private investors in the US Treasury market could keep long-term Treasury yields near multi-decade highs.
- Barclays said private investors' share of US Treasury holdings has risen sharply to about 73% from about 50% a decade ago, while inflation and fiscal deficits are increasing Treasury supply as demand from the Fed and overseas central banks declines.
- Barclays said the yield on the US 30-year Treasury recently approached 5.28% as investors demand higher yields.
Forecast Trend Report by Period
Barclays said long-term US Treasury yields may remain near multi-decade highs as the market becomes increasingly reliant on price-sensitive private investors, Walter Bloomberg reported on August 11.
Private investors now hold about 73% of US Treasuries, up sharply from about 50% a decade ago, according to Barclays. As demand from the Federal Reserve and overseas central banks declines, persistent inflation and fiscal deficits are increasing Treasury supply and pushing investors to demand higher yields.
The yield on the 30-year US Treasury recently approached 5.28%.
JH Kim
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