Submitted by Taps Coogan on the 22th of February 2020 to The Sounding Line.
Enjoy The Sounding Line? Click here to subscribe.
Ralph Delguidice, money market observer and global macro strategist at Pavilion Global, recently spoke with Erik Townsend of MacroVoices to deliver a counter intuitive message: despite a massive increase in federal deficits, there is actually a large and growing shortage of marketable treasury debt.
Mr. Delguidice explains what is driving this counter-intuitive dynamic: regulatory changes that have mandated much higher treasury holdings by financial institutions, large treasury purchases by the Federal Reserve, retiring Baby-Boomers, and derivative margin requirements. The discussion references a chart-book that can be obtained for free by registering at MacroVoices (We have no relationship with MacroVoices).
The discussion doesn’t lend itself to excerpts, so enjoy the full discussion below. It is a technical discussion, but well worth listening to.
Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.