About this work
Why were long term US yields so low in June 2021? Robin Brooks, Jonathan Fortun and Jonathan Pingle identified temporary forces: subdued labor market releases and reduced Treasury issuance as the government drew down its cash balance. After Federal Reserve purchases, net issuance turned negative in the second quarter. They expected these supports for bond prices to fade, strengthening the case for higher yields in the second half of 2021.
Abstract
Why were long term US yields so low in June 2021? Robin Brooks, Jonathan Fortun and Jonathan Pingle identified temporary forces: subdued labor market releases and reduced Treasury issuance as the government drew down its cash balance. After Federal Reserve purchases, net issuance turned negative in the second quarter. They expected these supports for bond prices to fade, strengthening the case for higher yields in the second half of 2021.
Cite this work
Robin Brooks, Jonathan Fortun, Jonathan Pingle (2021). Global Macro Views: The US Yield Conundrum. Institute of International Finance.