Report to the Secretary of the Treasury from the Treasury Borrowing Advisory Committee

February 4, 2025Letter to the Secretary Dear Mr. Secretary, Congratulations on your appointment; we look forward to working with you. Since the TBAC last met in late October, 2-year Treasury yields are little changed while 10-year Treasury yields increased by about 25bp. The broad trade-weighted dollar appreciated 2.1% and is close to its high since 2022. Equity prices continued to advance with the S&P 500 up 4.0%. Interest rates and other asset prices have responded to the backdrop of robust growth and cooling, if still elevated, inflation, as well as to expected policies from the new Administration. The rise in longer-term interest rates and dollar appreciation in part reflect continued strong growth in the US, which is exceptional relative to softer growth elsewhere.