An influential panel of bond market participants is warning policymakers to pay attention to the deteriorating federal budget, with investors demanding steeper premiums to buy the government’s longer-term securities.
“Effectively, while there is still reasonable demand for US Treasuries from many domestic and international market participants, it has not kept pace with the increase in supply,” according to a Treasury Borrowing Advisory Committee analysis released Wednesday.
Treasury Secretary Janet Yellen, who last week played down the effect of bigger supply in driving a months-long selloff in longer-term Treasuries, met with the TBAC panel on Tuesday. The group includes major bond …
