Wall Street institutions anticipate that the U.S. Treasury Department may shift towards issuing short-term bonds and reducing long-term bonds in its November debt issuance plan, in order to alleviate pressure on long-term yields.
U.S. Treasury Secretary Scott Bessent (Scott Bessent) has upended the predictability of the U.S. bond market by adopting a more proactive debt management strategy, including the "Treasury Twist" bond buyback program announced last week. Wall Street institutions are urgently modeling significant adjustments to the government's borrowing strategy in the coming months and warn that the Treasury's quarterly refunding announcement on November 4 has become an unprecedented unknown. Mainstream institutions anticipate that the Treasury may signal in November that future borrowing will be conducted through short-term Treasury bills and shorter-dated notes, while further expanding the scale of buybacks. Some investment banks even point out that the possibility of the aggressive option of directly cutting long-term bond issuance is increasing.
Source:华尔街见闻 · Source Link
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