The bond market is under pressure: the scale of bond auctions has increased month after month🧐
The Treasury Department announced a significant increase in its quarterly net borrowing forecast (about $1 trillion in the fourth quarter), while next week's bond auction will increase by more than $7 billion and "the size of the Treasury auction will increase modestly further," while The worst is yet to come, as current borrowing forecasts see five-year bond auctions surging from about $43 billion per month last month to $70 billion per month by April 2024 at the earliest. Even by U.S. fixed income standards, this is a very significant increase in bond supply.
