Market Commentary

Congressman Brad Sherman is Buying More U.S. Treasury Bonds

Rahul Joshua1 Sept 2022 · 1 minute read

According to yesterday’s filing, Congressman Brad Sherman disclosed that he invested between $500,000 and $1,000,000 in the U.S. Treasury Bonds on August 26.

This marks his third investment in U.S. Treasury Bonds after previously disclosing a $15,000 - $50,000 trade he made on July 13, in addition to another investment of $250,000 to $500,000 on May 10. These three trades are the only investments that Sherman reported in recent years.

The yield on the benchmark 10-year note was about 3.04% on August 26 before it surged to over 3.20% amid the latest bets that the Fed will deliver another 75-bps rate hike in September. Last Friday, Fed Chair Jerome Powell reiterated his earlier stance that the Fed will do whatever it takes to bring down inflation; these remarks push shares sharply lower.

It is speculative that Sherman made his move in response to Powell’s remarks.

Yields previously hit an 11-year high in June after racing higher, which sent the stock market crashing to 2022 lows. Some analysts believe that yields will continue to move higher towards the 3.50% handle, which stopped June’s rally. The 3.25% handle is also likely to offer resistance to surging bulls.

Brad Sherman is one of the most notable Congressmen given that he is serving as the U.S. representative for California's 30th congressional district since 2013. He also sits on some of the most important committees in the House, namely Financial Services, Foreign Affairs, and Science, Space, and Technology.