Will Treasury's Upcoming Monster Borrowing Plans Outshine Fed's Interest Rate Call?
Portfolio Pulse from Piero Cingari
The US Treasury Department's quarterly refunding announcement is expected to reveal its strategy to increase sales of long-term debt. This comes as long-term bonds have been falling for weeks, despite the Federal Reserve hinting at a possible cessation of interest rate hikes. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen 18% year to date, following a 33% drop in 2022. Market participants are watching to see if the pace of expansion in longer-term debt sales will continue.
October 30, 2023 | 8:13 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen 18% year to date, following a 33% drop in 2022. The ETF could be further impacted by the Treasury's plans to increase sales of long-term debt.
The iShares 20+ Year Treasury Bond ETF (TLT) tracks the investment results of an index composed of U.S. Treasury bonds with remaining maturities greater than twenty years. Therefore, any changes in the Treasury's long-term debt strategy, such as an increase in sales, could directly impact the ETF's performance. Given the recent decline in TLT's value, the Treasury's plans could potentially exacerbate this trend.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100