Report
The conundrum of long-term interest rates in the United States
Long-term interest rates on the public debt remain very low in the United States a t a time when: Non-residents are selling US bonds; Bond issuance is becoming significant due to the increase in the fiscal deficit; The Federal Reserve is reducing the size of its balance sheet; Global foreign exchange reserves are declining (which means that central banks are selling Treasuries). All these developments should have led to a rise in US long-term interest rates, which has not taken place . Why ? The first explanation is that US domestic investors are switching to public sector bonds at the expense of equities and corporate assets. Renewed confidence in assets issued by companies would therefore lead to an upturn in long-term interest rates. The second explanation is obviously the Federal Reserve’s downward revision of interest rate expectations, which would chang e only if core inflation rose in the United States.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.