Starved for yield? U.S. retail investors likely to seek Treasuries again this year GlobeInvestor
as interest rates paid on securities maturing in a year or less hit their highest levels in a decade, promising consumers a far greater short-term return than a bank savings account or most certificates of deposit.
The Congressional Budget Office projected the U.S. budget deficit will grow by a cumulative $12 trillion over the next 10 years to reach 4.4 percent of gross domestic product on an annual basis, compared with the 2.9 percent average over the last 50 years. That translates to annual deficits of roughly $1 trillion.
At bill auctions for the first two months of the year, for instance, individual investments totaled roughly $40 billion, nearly two-and-a-half times the $16.6 billion allotted a year earlier, data from the Office of Debt Management showed. Vincent Deluard, global macro strategist, at INTL FCStone Financial in San Francisco said he was part of that domestic flight to U.S. debt.
This arbitrage on cash-like instruments from individual investors has supported the short-end of the curve.That said, Deluard noted that over the longer term, this re-allocation from brokerage or savings accounts is hampered by the fact that cash balances are at historically low levels. Reversing that stock market allocation would free about $4 trillion in savings that could possibly go into the Treasury market, Deluard said.Annual U.S. Treasury supply has nearly doubled since 2015. At the end of 2018, Treasury supply totaled $1.36 trillion from about $688 billion in 2015, according to Fed and Morgan Stanley data.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. SEC sues VW, ex-CEO over alleged emissions fraud on investorsU.S. SEC sues VW, ex-CEO over alleged emissions fraud on investors GlobeBusiness
Read more »
TransAlta stock rises after U.S. activist investor group demands changeShares up more than five per cent
Read more »
Joe Biden’s apparent verbal slip is the latest sign he’s running again for U.S. presidentThe former vice-president under Barack Obama hasn’t formally announced whether he will launch a third run for the White House, despite repeatedly teasing the possibility.
Read more »
FedEx misses earnings estimates, cuts full-year EPS forecast againPackage-delivery company, which is seen as a bellwether for the global economy, slashed its full-year profit forecase in December on weak European growth and a cooling Chinese economy
Read more »
Why new technology isn’t always good for investors, reasons to stick with U.S. investments, and which stocks this analyst has his eye onWhy new technology isn’t always good for investors, reasons to stick with U.S. investments, and which stocks this analyst has his eye on GlobeInvestor
Read more »
Jefferies expects CBD beauty market to reach US$25 billion in 10 yearsJefferies expects CBD beauty market to reach US$25 billion in 10 years via TheGrowthOp
Read more »
New Jersey man returns library book 53 years late, avoids US$2,000 late feeA New Jersey man says he has returned an overdue library book -- 53 years after he first borrowed the book.
Read more »
Trudeau cabinet shuffle puts Liberal MP Joyce Murray in Philpott’s vacated Treasury Board spotMove marks third cabinet shuffle in three months in wake of resignations over Liberal handling of SNC-Lavalin affair
Read more »
Joyce Murray tapped as new Treasury Board President in latest Trudeau shuffleLongtime Liberal MP Joyce Murray has been tapped by Prime Minister Justin Trudeau to join cabinet as the new Treasury Board President and Minister of Digital Government.
Read more »