Fed's Barkin (2027 voter) says long-term rates are being driven by supply and demand of US Treasuries, with supply rising on larger deficits

Fed's Barkin (2027 voter) says long-term rates are being driven by supply and demand of US Treasuries, with supply rising on larger deficits.

Barkin's remarks signal that future long-term interest rate levels may remain influenced by increases in U.S. Treasury supply due to rising deficits. This insight suggests that if supply pressures continue, we might see upward pressure on yields, which could affect broader monetary policy and asset valuations. Traders should watch for how this perspective shapes market sentiment around U.S. rates and the USD's performance against other currencies.