According to a US Bureau of Economic Analysis release of July 12, 2006, the US trade deficit leveled off during 2006, with a difference between imports and exports of goods and services of $63.8 billion in May 2006. Since the trade deficit is a major source of funds for the US bond market, a slowing of […]

Although foreign investors continue to be the largest purchasers of most types of US bonds, this sector showed less interest in Treasuries than in the past, shifting assets into short-term repurchase agreements in Q1 2006. In same quarter, the offer of new bonds rose due to seasonal issues by the US Treasury and to domestic corporations […]

Net issuance of bonds into the U.S. market in Q1 2006 surpassed prior records, forcing bond prices to fall and rates to rise. Total, annualized net sales for corporate and foreign bonds, agencies, treasuries and municipal bonds reached $2.2 trillion, 70% higher than bond issuance in 2005. There are several reasons for this record level of bond […]