Title: The 5 Big Reasons Treasury Yields Are Jumping And Stocks Are Sliding
Headings: The 5 Big Reasons Treasury Yields Are Jumping And Stocks Are Sliding
The 5 Big Reasons Treasury Yields Are Jumping And Stocks Are Sliding
The Amazon $15 Wage Economy
Hawkish Fed Talk
Trillion-Dollar Deficits
Quantitative Tightening
Global Bond Yields

Content: Having just wrapped up its 2018 with an estimated $850 billion deficit, the federal government is on track to run a $1 trillion deficit this year. CBO has indicated that deficits could hit $2 trillion a year within the decade if current tax and spending policies are extended. Quantitative Tightening
Another reason for the growing Treasury issuance is the Fed's gradual reversal of trillions of dollars' worth of government bond purchases in the wake of the financial crisis. Begun in the fall of 2017, so-called quantitative tightening gradually reduces the central bank's bond holdings as they mature, rather than continuing to reinvest the principal. The Fed has gradually ramped up the value of government bonds it allows to fall off its balance sheet. From up to $20 billion a month at the start of 2018, the Fed stepped that up to $40 billion a month in the third quarter and now, as of this week, up to $50 billion a month. Global Bond Yields
To some extent, government bond yields around the world are interdependent. Ultra-low government bond yields in Germany and Japan have helped to restrain U.S. Treasury yields. It makes sense that some demand for German bond yields would shift to U.S. Treasuries as the yield gap between them grows. The extra demand for Treasuries, in this case, would limit the upside for yields.