(Bloomberg) — Bond industry leaders see a bleak US fiscal outlook that will keep debt growing and sustain elevated long-dated Treasury yields.
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Speaking during a panel discussion at the ISDA/Sifma Treasury forum in New York Wednesday, market participants said spending cuts and tax increases that would address concerns of growing Treasury debt supply remain unlikely — regardless of who wins November’s presidential election. The most worrying scenario, they said, is a clean sweep by one party taking control of the White House and both chambers of Congress.
“No matter what the election result is, when you fast forward five to 10 years, the fiscal direction is not comfortable,” said Jason Granet, chief Investment Officer at BNY Mellon.
The amount of US Treasuries outstanding has grown to $27 trillion, up from about $12 trillion a decade ago. Last month, the Treasury left its quarterly issuance of longer-term…
