Since Scott Bessent took over as Treasury Secretary in January, there has been a 180-degree shift in how bond traders view the key issue of his issuance strategy in the $29 trillion US Treasury bond market. At the beginning, the focus was on how quickly he would increase the issuance of long-term treasury bonds. After all, Bezent and other Republicans previously accused former Treasury Secretary Janet Yellen of artificially suppressing the issuance of such debt, and said this was to keep borrowing costs low until the election. However, after taking office, Bezent quickly continued Yellen's debt management plan, and made it clear many times that he would not increase the issuance of medium- to long-term bonds due to excessive yields. The current debate focuses on the limits of the Ministry of Finance's tendency to issue treasury notes. Traders will look for clues in the next official update to the bond issuance plan released by the Ministry of Finance on Wednesday.

Since Scott Bessent took over as Treasury Secretary in January, there has been a 180-degree shift in how bond traders view the key issue of his issuance strategy in the $29 trillion US Treasury bond market. At the beginning, the focus was on how quickly he would increase the issuance of long-term treasury bonds. After all, Bezent and other Republicans previously accused former Treasury Secretary Janet Yellen of artificially suppressing the issuance of such debt, and said this was to keep borrowing costs low until the election. However, after taking office, Bezent quickly continued Yellen's debt management plan, and made it clear many times that he would not increase the issuance of medium- to long-term bonds due to excessive yields. The current debate focuses on the limits of the Ministry of Finance's tendency to issue treasury notes. Traders will look for clues in the next official update to the bond issuance plan released by the Ministry of Finance on Wednesday.