TY - JOUR T1 - The Effect of Reduced Supply of Treasuries JF - The Journal of Portfolio Management SP - 75 LP - 82 DO - 10.3905/jpm.2002.319834 VL - 28 IS - 2 AU - Sean Corridon Y1 - 2002/01/31 UR - https://pm-research.com/content/28/2/75.abstract N2 - The supply of outstanding U.S. Treasury debt is declining because of the recent federal budget surpluses. Should current expectations for future surpluses be met, in the future U.S. Treasuries will constitute a dramatically smaller portion of the overall U.S. fixed–income market. In this article, the author estimates the impact of the expected composition shift on the risk of the fixed–income market and its relationship with other broad asset classes. He concludes that fixed–income risk may actually fall slightly, but its correlation with other asset classes should rise, possibly leading to increased risk at the overall portfolio level. ER -