Nevertheless, some market observers warn that banks could shift away from government bonds next year to boost lending. Consequently, Treasuries won’t find continued support from commercial banks next year.
“We expect the banks are going to see stronger loan growth, so more of their liquidity will be going into those types of earning assets,” Matthew Burnell, a senior banking analyst at Wells Fargo & Co., said in the article.
iShares 7-10 Year Treasury Bond ETF
For more information on the Treasuries market, visit our Treasury bonds category.
Max Chen contributed to this article.