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Companies are issuing the least amount of 30-year bonds in 14 years. What that tells investors. - MarketWatch

1. Corporations are hesitant to issue long-term bonds amid interest rate uncertainties. 2. Investment-grade bond issuance has significantly dropped beyond the 10-year mark. 3. High bond yields may attract investors despite corporate hesitance. 4. Concerns over tariffs and U.S. economy are affecting market sentiment. 5. Demand for low-risk, longer-duration assets continues amidst political uncertainty.

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FAQ

Why Bearish?

The uncertainty around interest rates and economic policy discourages long-term investment, likely raising TMUBMUSD10Y yields. Historical examples include the 2016 uncertainty following the US election which led to volatility in treasury yields.

How important is it?

The ongoing economic policies and high yield environments contribute significantly to TMUBMUSD10Y price dynamics. Companies' reluctance to issue bonds reflects broader economic sentiment impacting treasury yields.

Why Short Term?

Immediate aversion to long-term corporate bond issuance will likely mitigate investor confidence in TMUBMUSD10Y yields over the next quarters.

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