When examining the headline figures surrounding federal debt and rising interest rates, it is easy to view government borrowing through a pessimistic lens. However, if you look beneath the surface of daily market noise, there is remarkable clarity and strategic discipline in how the U.S. Department of the Treasury is managing its balance sheet. I was recently explaining this exact dynamic to my mother regarding her broker-traded Treasuries on E*TRADE. She was unhappy seeing her account show a paper value decrease on existing holdings. I walked her through why that price drop happens... as newly issued benchmark market yields rise above 5.2%, older fixed-rate paper is repriced downward on brokerage statement ledgers. But the underlying mechanics remain exceptionally strong. Her existing 30-year Treasuries carrying a 4.7% locked-in yield are virtually impossible to match on the open market when balanced against the absolute safety of sovereign U.S. debt. Today's Treasury actions hi...
Systems, Iron, and Yield: Periodical logs on programmatic trading, augmented infrastructure income, and the discipline of a structured life by an algorithmic quant Trader.
A periodical by Michael Medeiros