The Treasury bond market can tell us a lot about what’s going on in the economy, as well as the mood of investors. For instance, while 30-year Treasury bonds were seeing the highest demand ever last month, just this past week, auctions for shorter-term bonds drew weak demand and forced yields up. That change can be chalked up to a few factors, including the ongoing conflict in the Middle East and inflationary pressure that the Federal Reserve is going to have to address.
Andrea Eisfeldt is a professor of finance at the University of California, Los Angeles Anderson School of Management. She joined “Marketplace” host Kai Ryssdal to discuss what the bond market is telling us about the future of the economy and why it matters to the average American.
Listen in the player above to hear the conversation.