TD Securities strategists Gennadiy Goldberg and Molly Brooks say US long-term
Treasury yields look attractive on both real and nominal measures but investors
confidence is weak, leaving yields vulnerable to further near‑term upward
pressure. They say relieving that pressure would require one or more of: the Fed
delivering more credible messaging on inflation; the US Treasury signaling
reduced long-term issuance; improved investor demand; a slowdown in
investment‑grade supply; or renewed growth concerns. The US Treasury said on
Wednesday it will increase buybacks of long-dated Treasures to curb a rapid
rise in borrowing costs.
