Keep Your Eye on Treasurys

Tuesday, March 27, 2012, 6:19 PM
Enroll NowFor enrolled members only. Enroll or Sign in to read the full article.
Treasury Market Rumblings

One of the key indicators that I keep a semi-open eye on throughout every trading day is the price of US Treasurys. As you know, the US is living on the kindness of strangers, and if foreign desire for US Treasury obligations wanes, much trouble could quickly mount for the US dollar and general fiscal condition.

As prices for Treasurys rise or sink, interest rates move in exactly opposite directions..

Like any asset class, the price of Treasurys will rise if there are more buyers than sellers, and sink if there are more sellers than buyers.

A natural, normal, and healthy reason for Treasurys to sink in price would be investors leaving the "flight to safety" trade because they perceive economic conditions to be improving. Less good reasons include the fear of inflation picking up, over-issuance by the government, and foreign entities leaving the trade.


Enroll Now
Or Sign In with your enrolled account.
Endorsed Financial Adviser Endorsed Financial Adviser

Looking for a financial adviser who sees the world through a similar lens as we do? Free consultation available.

Learn More »
Read Our New Book "Prosper!"Read Our New Book

Prosper! is a "how to" guide for living well no matter what the future brings.

Learn More »


Related content

7 Comments on Keep Your Eye on Treasurys

Enroll now or Sign In to read all member comments.