The $27 Trillion Treasury Market Is Only Getting Bigger By Hardika Singh
The world's largest, most-important financial market is growing by leaps and bounds. On Wall Street, that is making people nervous. Meanwhile, don't get your hopes up for lower mortgage rates, and Donald Trump's finances are under stress but could be saved by a big windfall. Read on for this news and more.
Top News The $27 Trillion Treasury Market Is Only Getting Bigger
Annual issuance of U.S. Treasurys has exploded, nearly doubling since the pandemic began. The government sold a record $23 trillion worth in 2023. And few think the spree is going to slow soon, given the widespread expectation that government spending will continue to rise regardless of who wins November's elections.
Rapid growth in markets from tech stocks to mortgage bonds has ended badly in the past. Treasurys are considered the safest and easiest-to-trade securities on Wall Street, and many worry that any instability there could rapidly spread.
U.S. Economy The New Normal for Mortgage Rates Will Be Higher Than Many Hope
Interest rates are likely to come down later this year, with the Federal Reserve on track to start cutting rates. But mortgage rates might not follow as quickly. That is because mortgages, and mortgage-backed bonds, just aren't as in demand in financial markets as they were in the years before the Fed began to start to tighten in 2022. And they might not be for a while.
Financial Regulation Roundup Trump Is in a Race Against Time to Protect His Fortune
In the span of just a few days, Donald Trump's financial position has moved from seemingly dire-facing the seizure of prized real estate if he doesn't obtain a large bond-to potentially dazzling, with revelations that his social-media company could bring him more than $3 billion.
Forward Guidance Monday (all times ET)
8:25 a.m.: Atlanta Fed's Bostic speaks at the University of Cincinnati Real Estate Center's March Roundtable
10 a.m.: U.S. new home sales
10:30 a.m.: Dallas Fed Texas Manufacturing Outlook Survey
Tuesday
8:15 a.m.: Bank of Canada's Rogers speaks to Halifax Partnership
8:30 a.m.: U.S. durable goods orders
9 a.m.: S&P CoreLogic Case-Shiller Home Price Index
10 a.m.: The Conference Board's consumer confidence index
3 p.m.: ECB's Lane at Trinity Student Economic Review event at Trinity College Dublin
Research Canada Temporary Visa Curb Won't Meaningfully Slow Population Growth
Canada's goal to curb temporary-worker visas over the next three years would result in a net reduction of 375,000 immigrants, economist Derek Holt from Bank of Nova Scotia estimates. Holt says that, on an annualized quarterly basis, "this planned reduction will only take us back to where the temporary level was around the middle of last year - which isn't much of a rollback." - Paul Vieira
Basis Points Foreign direct investment in China dropped in the first two months of the year , continuing a fall that started after economic growth plateaued amid a prolonged property downturn and weak domestic demand. As the world's postpandemic economic order takes shape, the U.S. has emerged as an unexpected winner. Asian economies that fared relatively well during the pandemic-especially China, but also advanced economies such as Japan and Taiwan-have struggled to maintain steam. - Nathaniel Taplin and Megha Mandavia Feedback Loop
This newsletter is compiled by Hardika Singh in New York.
Send us your tips, suggestions and feedback. Write to:
[hardika.singh@wsj.com]
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
03-25-24 0716ET
