Market Commentary

Blaine Luetkemeyer Loads up on Millions of US Treasuries

Matthew Levy, CFA · 1 minute read

Blaine Luetkemeyer, a Republican politician who currently serves as the U.S. Representative for Missouri's 3rd congressional district, made waves with some large trades disclosed in his latest filing. He made 3 purchases of between $1,000,000 - $5,000,000 of US Treasuries on December 12, 2022, December 22, 2022, and November 23, 2022.

Those aren’t small opinions to be making on the market. Clearly, the Congressman is comfortable with the current treasury rates and is loading up on the opportunity, as the total of the three trades amount to between $3,000,000 to $15,000,000 of his net worth in the trades.

Was he too soon on this trade? Just yesterday, Federal Reserve Chairman Jerome Powell announced that interest rates are likely to be higher than previously anticipated due to the strong economic recovery and rising inflation. Powell stated that the Fed will be closely monitoring economic data and will adjust its policies accordingly to maintain price stability and support sustainable economic growth. However, he reassured investors that the Fed is committed to a gradual approach and will avoid any abrupt changes that could disrupt financial markets or the economy. Higher rates would surely drive the prices of his purchased bonds lower, although if he holds to maturity he will still get the purchased coupon and principal back.

Mr. Luetkemeyer has held his seat in Congress since 2009. Prior to his political career, Luetkemeyer worked in the banking industry and served as a Missouri state representative and senator. In Congress, he has served on several committees, including the Financial Services Committee and the Small Business Committee. Luetkemeyer is known for his conservative views and has advocated for policies such as deregulation, tax cuts, and Second Amendment rights.