The Risks of a 'Crowding-Out Effect' in Treasuries

The video discusses the impact of increased treasury refunding on the market, highlighting the crowding out effect where large treasury borrowings make it difficult for other borrowers to access capital. It explores the US high yield market, noting the scarcity of supply and its effects. The video also examines factors influencing treasury yields, such as economic growth and trade deficits. Additionally, it addresses the pressure from treasury issuance and the competition for capital, emphasizing the role of cash as an asset class and investment strategies in a changing market.

What does the speaker mean by saying the market is 'choking' on the volume of T-bills?

How does the interest on excess reserves impact the T-bill market?

What challenges does the Treasury face in finding a place for all the T-bills?