Liquidity now begins to drain out of the markets for the first time since the debt ceiling.| Wolf Street
The bond market’s reaction to cocktail of inflation fears, potentially lax Fed, and Mississippi River of new debt flowing into the market.| Wolf Street
An ugly situation. But capital gains taxes and tariffs helped. And the debt ceiling covered up part of the problem.| Wolf Street
US Treasury debt surged by $441 billion since the debt ceiling, to $36.7 trillion. Foreign demand for this stuff is an increasingly important issue.| Wolf Street
Businesses have been paying them out of their huge profits and have not been able to pass them on to consumers so far.| Wolf Street
But buybacks occur at huge losses for investors. Today it bought back a 1.25% 20-year bond for 66 cents on the dollar.| Wolf Street
For the Treasury market, Powell’s speech was a nothingburger. A Sep rate cut has been priced in since the Aug 2 jobs report.| Wolf Street