US Put on Notice by Key Bond Panel to Mind Fiscal Deterioration
- Yellen met Tuesday with Treasury Borrowing Advisory Committee
- Panel advises policymakers demand not keeping pace with supply
Janet Yellen.
Photographer: Al Drago/BloombergThis article is for subscribers only.
US policymakers were advised this week by an influential panel of bond market participants to pay attention to the deteriorating federal budget, with investors demanding steeper premiums to buy the government’s longer-term securities.
“Effectively, while there is still reasonable demand for US Treasuries from many domestic and international market participants, it has not kept pace with the increase in supply,” according to a Treasury Borrowing Advisory Committee analysis released on Wednesday.