The Treasury Borrowing Advisory Committee (TBAC) reported that U.S. Treasury yields remained stable since their November meeting, though global markets experienced volatility due to rising Japanese bond yields and fluctuating commodity prices. The S&P 500 rose 16% year-to-date, while inflation metrics faced distortions from delayed October 2025 economic data. The Fed maintained interest rates amid discussions about potential further cuts, and its balance sheet expanded through Reserve Management Purchases. The TBAC endorsed maintaining current auction sizes for Treasury securities, emphasizing the need for a predictable issuance framework. Committee members discussed the viability of SOFR-linked floating rate notes and the role of private holdings in shaping issuance strategies, while noting strong demand for Treasury securities despite shifting investor preferences.
https://home.treasury.gov/news/press-releases/sb0385
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