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Treasury strength may face headwinds from September corporate issuance

MarketWatch notes a large corporate-bond calendar in September could draw demand away from Treasuries, limiting any near-term reprieve for rates investors.

Reported · Written up by our desk · Corporate Bonds

A potential improvement in Treasury market conditions could prove temporary as heavy corporate-bond issuance is expected in September, according to MarketWatch.

The outlet frames the key issue for bond investors as where they allocate capital, since new corporate supply arriving on schedule can influence demand across the broader fixed-income market.

MarketWatch highlights that portfolio positioning could shift as issuers come to market, which may affect how much support the Treasury market can sustain.

The discussion is anchored by commentary from Henry Song, a portfolio manager at Diamond Hill, who emphasizes the importance of relative opportunities across bond sectors as investors decide where to put money to work.

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