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Luke Gromen, founder, president, macroeconomic analyst, investor at FFTT, LLC (Forest for the Trees), observes that following almost three years of increased short-term U.S. Treasury issuance to avoid spikes in long-term yields, the pace of annual U.S. Treasury rollover is now accelerating rapidly.
He suggests that with rollover needs going exponential, a 50 basis point rate increase could sharply intensify pressure on the bond market.
Gromen has previously commented on policy and budget pressures affecting U.S. markets. He recently noted that Veterans' Benefits have risen to a record 27 percent of Defense Department spending. In an earlier post, he discussed neoliberal concerns over China’s impact on U.S. corporate profits.