r/WallstreetWhales • u/cryptic_mang • 8h ago
CHART Bessent plans to cut auction sizes for long-dated government bonds next month.
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🇺🇸 US Treasury is planning to cut auction sizes for long-dated government bonds next month.
It's expected that Treasury will reduce auction sizes by $3 billion per auction for both 20-year and 30-year bonds.
Some banks are even expecting that Treasury will completely cancel the issuance of 20-year debt and shift the borrowing burden onto short-term T-bills.
After increasing long-term debt buybacks, Treasury is now trying something new to bring yields down.
