Demand for Treasury bonds is showing early signs of weakening as US plans to increase supply

• The Treasury Borrowing Advisory Committee said there are early signs of waning demand for US bonds.
• "Demand for US Treasuries may have softened among several traditional buyers."
• The warning came as the Treasury Department increased its borrowing plans, boosting the supply of bonds.

Demand for Treasury bonds is starting to weaken among investors just as the federal government is increasing the supply of US debt.

The Treasury Borrowing Advisory Committee's quarterly report to Secretary Janet Yellen on Wednesday noted the recent surge in US bond yields and offered some explanations, such as strong economic growth, tight labor market, and expectations for future central bank policy.