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Long-term Treasury yields now driven more by debt supply and buyer base than Fed moves

Market News
18 Sep 2026
Seeking Alpha
View Source
Neutral
Long-term Treasury yields now driven more by debt supply and buyer base than Fed moves

Long-term U.S. Treasury yields are increasingly influenced by factors like debt supply, term premium, and the composition of buyers rather than solely by Federal Reserve actions. The Treasury basis trade, a key source of demand for cash Treasuries, peaked around $1.5 trillion but has since moderated, which doesn't necessarily indicate financial stress but could mean the market relies more on price-sensitive investors to absorb new debt. Current market indicators do not suggest a crisis similar to 2020, but the bigger risk may be a structural shift toward higher long-term yields amid large deficits and competing corporate bond issuance. Investors should watch not only Fed policy but also the yield levels needed to attract new Treasury buyers going forward.

The Fed's potential pause in rate hikes and its impact on Treasury yields is the subject, with Pluang market data providing context. As of Sep 18, 2026 23:51 WIB, 44 of 150 priced US stocks on Pluang rose while 105 fell. Notable movers include FuelCell Energy Inc (FCEL) at USD 18.27 with a 3.16% increase, Plug Power Inc (PLUG) at USD 2.06 down 3.07%, and Lucid Group Inc (LCID) at USD 4.17 down 2.69%.

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