On Friday, President Donald Trump signed a budget bill that suspends the debt ceiling for two years • This has just given the U.S. Treasury the capability to issue more bonds to cover a burgeoning budget deficit that’s projected to hit $1 trillion this year • Deutsche Bank chief U.S. economist Torsten Slok recently estimated that the biggest holder of U.S. Treasuries are American pension funds, insurance companies, and the Federal Reserve • “Treasuries are still considered a safe-haven asset,” said Eric Stein, co-director of Global Income for Eaton Vance Management, which has around $440 billion in assets under management. “No market is as deep as the Treasury market.” • Foreign inflows into longer-term U.S. debt turned positive in April for the first time this year, Goldman Sachs noted recently — but there was a catch: Global investors are increasingly parking their money in agency securities and high-grade corporate bonds • Where Are 10Y Bond Yields Headed? Email Now To Access Our Bond Market Algo Trade Alerts: inquiries@ppchk.net
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