S&P 500 Analysis & ETF Trading

[kiy]

yes...Treasury can keep selling Bills its just the rates will keep going higher and the value lower...first because you bought it at a discount...but it doesn't mean the purchasing power of those dollars will be the same...sometimes you are just keeping up with inflation...value of the dollar may have gone down...and inflation may have increased.

I am not a Bond trader...I don't like the bond market at all...too many factors and too much subjective speculation as to the direction of interest rates...especially when the FED is in a cycle of increasing the Discount Rate. Like now...a lot of guessing of how many rate hikes will happen this year...

Inflation or more specifically, monetary inflation, is generally due to an increase in money being circulated. This means more deposits held in foreign banks and more cash in savings and checking accounts. If the government increases circulating money faster than companies can manufacture enough goods, more people demand the goods since more money exists to pay for them and this pushes prices higher. Additionally, since the amount of money in circulation has increased, each dollar has less value and every business must raise its prices just to get the same value it used to get for its products.

Many factors may affect Treasury bill interest rates in general, as well as rates for specific issues of Treasury securities, in particular. Here are several factors you might want to consider:

Demand for risk-free fixed-income securities in general—For example, a "flight to safety" caused by concerns about default or liquidity risk in other financial markets may cause investors to shift to T-bills to avoid risk.
Supply of T-bills by the U.S. government--for example, federal budget surpluses in 1998-2000 have reduced the supply of some Treasury securities issues.6
Economic conditions may influence rates--for example, Rose (1994) notes that T-bill rates typically rise during periods of business expansion and fall during recessions.7
Monetary policy actions by the Federal Reserve--Fed actions that affect the Federal funds rate likely will influence interest rates for other close substitutes, including short-term T-bills.
Inflation and inflation expectations also are factors in determining interest rates--for example, periods of relatively high (low) rates of inflation usually are associated with relatively high (low) interest rates on T-bills (see chart, below).