Treasuries continue to be supported by light supply this week. That will remain the case for at least the next few months. Shrinking supply for the past 6 years has been the fundamental underpinning for low yields and it has also fostered the flow of excess liquidity into US equities. If the trend of shrinking Treasury supply should ever reverse, the environment would turn more hostile not just for bonds, but for stocks as well.
Liquidity moves markets!Follow the money. Find the profits!
The next report for Treasury Investor Monthly subscribers, will be posted at the August-September turn.
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