Rick Rieder tells Steve Liesman that, “This is a pretty extraordinary period of time, because you’ve got an immense amount of cash that’s sitting on the sidelines that just wants to sit in money market funds. And then you’re getting this immense supply coming to the market.”
Mr. Rieder then asks how much risk do you really want to take in term premium when the front rates are so high, and the Fed is indicating they’d like to raise more?
This corroborates that narrative of who is going to take up all the new Treasury issuance? Is this the return of the old bond vigilantes?
Mr. Rieder also thinks the Fed will cut rates during the 2nd half of 2024.