Michael Wagner Comments on Short-term Treasury Market in Bloomberg
Michael Wagner, co-founder and chief operating officer at Omnia Family Wealth, commented on the short-term treasury market in the wake of Fed tightening this week.
As treasuries rallied, dragging yields down, Wagner told Bloomberg, “There is great potential value in the short-term treasury market right now.”
According to Bloomberg, shorter-tenor securities led the way, with yields on three-year and five-year notes at one stage tumbling as much as 19 basis points, while the 10-year note’s yield was down as much as 14 basis points to 2.65%, the lowest level since mid-April.
This comes as the Commerce Department’s preliminary estimate showed GDP fell at a 0.9% annualized rate after a 1.6% drop in the first three months of the year. Personal consumption, the biggest part of the economy, rose at a 1% pace, a deceleration from the prior period. Bloomberg reported that the “GDP report illustrates how inflation has undercut Americans’ purchasing power and tighter Fed monetary policy has weakened interest rate-sensitive sectors such as housing.”