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Treasury market calm may face pressure in September
MarketWatch highlights that the improving near-term tone could deteriorate as a large September wave of corporate bond issuance arrives.
MarketWatch warns that a relatively calm period in the U.S. Treasury market could prove temporary as September approaches.
The outlet points to a difficult stretch for the Treasury market during the summer, saying the conditions could worsen just as many of the world’s largest companies move to issue more bonds.
The concern is that the expected increase in global bond supply in September could add pressure to Treasury market liquidity and pricing, undermining the stability seen in the earlier months.