Why Treasury bonds could be ‘bigger issue’ for markets than Fed

A huge week lies ahead for investors watching the Federal Reserve’s interest rate announcement, the Treasury Department’s bond issuance, and more earnings reports rolling out. All of these headline events come as the broader market dips into a technical correction, making many investors nervous as to what this means for future investments in the short term.
Annex Wealth Management Chief Economist Brian Jacobsen joins Yahoo Finance to discuss what this week holds in store for the market, and how investors should frame this as an opportunity.
“The refunding issue, that’s a little bit bigger issue as the amount of debt the government is issuing. The Fed has stepped out as being a captive buyer of that debt, foreign demand has declined so households and investment funds have had to fill that gap,” Jacobsen says. “So, if the Treasury comes out and if they are announcing that they’re going to be really lenient on longer-term issuance, that could be taken as a negative and you could have more of a bond sell-off.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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