The Treasury may soon opt to ramp up issuance of bills again to maintain the bull market for stocks. That would likely result in a steeper yield curve and increased rate volatility.
Stocks have climbed to within a couple of percentage points of their all-time highs in an impressive recovery. But the good news is wearing thin and the market’s vulnerabilities are becoming apparent. The conflict in the Middle East has been adding to the rally’s fragility, even as the market appears to be moving on from it (prematurely perhaps).
