US Treasury Secretary Scott Bessent has unexpectedly shown a willingness to interfere in the bond market and push yields down in recent months, and now Wall Street is preparing for the largest adjustment in US Treasury bond issuance guidelines since the beginning of 2024. Many traders expect that the US Treasury will revise the relevant guidelines in quarterly policy statements. For more than two years, the guidelines have indicated that the issuance of medium- to long-term treasury bonds will remain stable. A change in Wednesday's statement could pave the way for reducing the issuance of the longest-term treasury bonds in 2027 while increasing the scale of tenders for treasury bills and shorter-term treasury bonds to balance that. Some agencies are preparing for more aggressive initiatives. Citigroup expects that the Ministry of Finance will announce cuts in the issuance of 20-year and 30-year treasury bonds starting this month. This will actually go against the guidelines given in the previous so-called quarterly refinancing statement. Just a week after the announcement of the previous round of plans, Bezent unexpectedly expanded the repurchase of existing treasury bonds, a move seen as a response to surging yields.

US Treasury Secretary Scott Bessent has unexpectedly shown a willingness to interfere in the bond market and push yields down in recent months, and now Wall Street is preparing for the largest adjustment in US Treasury bond issuance guidelines since the beginning of 2024. Many traders expect that the US Treasury will revise the relevant guidelines in quarterly policy statements. For more than two years, the guidelines have indicated that the issuance of medium- to long-term treasury bonds will remain stable. A change in Wednesday's statement could pave the way for reducing the issuance of the longest-term treasury bonds in 2027 while increasing the scale of tenders for treasury bills and shorter-term treasury bonds to balance that. Some agencies are preparing for more aggressive initiatives. Citigroup expects that the Ministry of Finance will announce cuts in the issuance of 20-year and 30-year treasury bonds starting this month. This will actually go against the guidelines given in the previous so-called quarterly refinancing statement. Just a week after the announcement of the previous round of plans, Bezent unexpectedly expanded the repurchase of existing treasury bonds, a move seen as a response to surging yields.