The Uncertain Future of the U.S. Treasury Market

The last ripples of the 2008 financial crisis appear to be on the horizon as jobs and tax revenues are up, the government’s funding shortfall and borrowing needs are down, and the market awaits the first of many small rate increases from the Fed, signaling the end of an era of cheap money and a soaring Treasuries market that supported the bailout. All together, these trends are leading analysts to predict a decrease in the supply of long-term Treasury notes and bonds and a shift towards short-term, cash-generating T-Bills. Once the Fed decides to raise interest rates, no matter how marginal, fixed income investments, particularly U.S. Treasuries, are primed for some movement and investors should keep watch. For more information or assistance please contact Patrick Donnelly ([email protected]), member of Marcum’s Financial Institutions Industry Group.

See attached article entitled “There’s a Big Drop in U.S. Treasury Debt Supply Coming in 2016” by Liz McCormick and Daniel Kruger for more information.