Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Treasury Refunding May Be Biggest Event Risk In Packed Week
There's no shortage of key events for markets and traders this week, but the most important may be the Treasury's borrowing estimate and the refunding details on Monday and Wednesday, respectively.
This is ad nauseam, but it really can't be emphasized enough: The refunding announcement was the trigger for the November/December "everything rally."
The proximate cause of market angst beginning in August was a sharp increase in the term premium, reflecting the same (over)supply concerns and D.C.
It doesn’t seem likely that the Treasury will solve this issue on a long term basis (potentially causing a market selloff amongst potential outcomes that could harm the economy), nine months ahead of the Presidential election- when the Treasury can fairly easily delay the longer term fix until after the election.