Janet Yellen Dismisses Deficit As Cause Of Bond Yield Rise: Here's What She Says Set Off Treasury Turmoil
Portfolio Pulse from Piero Cingari
U.S. Treasury Secretary Janet Yellen has dismissed the expanding fiscal deficit as the cause of the recent surge in long-term bond yields, attributing it instead to the strength of the U.S. economy. The rise in yields could potentially slow economic growth and increase the U.S. government's borrowing costs. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), a barometer for the long-term Treasury market, has fallen by 15% in 2023 and is trading at levels last seen in July 2007.
October 26, 2023 | 7:33 pm
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The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen by 15% in 2023 and is trading at levels last seen in July 2007. The rise in bond yields could potentially slow economic growth and increase the U.S. government's borrowing costs, which could further impact the ETF's performance.
The rise in bond yields, which Janet Yellen attributes to the strength of the U.S. economy, could potentially slow economic growth and increase the U.S. government's borrowing costs. This could further impact the performance of the iShares 20+ Year Treasury Bond ETF (TLT), which has already fallen by 15% in 2023 and is trading at levels last seen in July 2007.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100