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Fed-Treasury 'Regime Change' May Fuel Bond Rally

Bloomberg Markets •
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The Treasury Department and Federal Reserve are moving toward a more coordinated approach that could shift government borrowing toward shorter-term debt and reduce the supply of longer-dated Treasuries, setting the stage for a rally in 30-year bonds, according to Citrini Research. The research firm argues that changes in banking regulation, Treasury debt management and Fed balance-sheet policy are coming together in what it calls a new “Treasury-Fed Accord.”