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Treasuries Face Several Risks, Not Least From Stubborn Inflation

Longer-term yields will be unable to go down significantly, absent a recession, while inflation remains stubborn and ongoing fiscal risks deter Treasury buyers.

May CPI is released later, but that comes as another piece of news today – on Hong Kong’s pension fund managers plan to sell Treasuries if the US loses its AAA rating altogether – is a reminder that structural risks persist for US debt even as inflation has slowed.

via June 11th 2025