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Rising Federal Debt Drives Long-Term Treasury Yields to Yearly High

1/10/2025

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Summary

Story summary

Ross Mayfield from Baird criticizes the Federal Reserve's cautious stance on federal debt reduction.
Barkin highlights that rising federal debt suppresses demand, leading to increased yields driven by term premium, not inflation.
Long-term Treasury yields hit a yearly high, with the 20-year yield surpassing 5%.
Barkin shared these observations at a Virginia Bankers Association event, despite not voting on Fed interest-rate decisions this year.

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Story summary

Ross Mayfield from Baird criticizes the Federal Reserve's cautious stance on federal debt reduction.
Barkin highlights that rising federal debt suppresses demand, leading to increased yields driven by term premium, not inflation.
Long-term Treasury yields hit a yearly high, with the 20-year yield surpassing 5%.
Barkin shared these observations at a Virginia Bankers Association event, despite not voting on Fed interest-rate decisions this year.