The likelihood of faster inflation means we have to be very cautious about holding Treasuries.
We're not interested in Treasuries because the Fed will probably raise rates two more times this quarter. That means yields have room to rise from here, which is why we are staying away for now.
We are still cautious about Treasuries because global interest rates are rising. I'll wait before buying because yields will keep going up in the short term.
Pension funds need long bonds and will be eager to buy at the auction. Demand will be quite strong.
Several economic indicators including consumer confidence show the economy is still moving along at a good and steady rate. The rise in Treasury prices will be limited.
Inflation is still a threat when U.S. economic growth is relatively strong. It will weigh down Treasuries.
There is a possibility the Fed may raise rates three more times to 4.5 percent before pausing, to keep inflation under control.
This is a chance to buy and we are increasing our exposure. Inflation is under control and that makes Treasuries even more attractive. We bought this week.
We are increasingly bullish on Treasuries because of where yields are. We are looking to buy more when the price dips.
The market will probably be less active today as players are waiting for the Fed speakers for some direction on where interest rates are heading.
