Reported about 1 year ago
The amount of zero-coupon Treasury bonds outstanding surged to nearly half a trillion dollars, setting a record of $493.95 billion in May. This rise is attributed to major US pension funds increasing their holdings of long-term debt, with a $4.3 billion increase last month, higher than usual, bouncing back from April. Treasuries in zero-coupon form have gained investors' interest, indicating attractiveness for long-term debt yields amidst Treasury gains in May and a surge in flows into long-term bond funds after a dovish FOMC meeting. The 30-year Treasury yields are currently at 4.6%, down from a high of 4.85% in April, with investors eyeing the Fed policy meeting outcomes to gauge future rate changes.
Source: YAHOO