The bond market is faced with a familiar question: Can the Treasury borrow more to stimulate the economy without raising interest rates?

Not to worry, at least not just yet. The bond market pays more attention to the economy than to bond volume, and yields can decline further, even though Treasury borrowing will increase. The economy will remain sluggish.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.