No quick fix for Treasury issuance surge – fixed income experts
Market’s ability to absorb additional $3.4trn of notes is keeping senior regulator “up at night”
Senior fixed income participants warn there is no easy remedy that would conjure up demand for the deluge of US Treasury bond issuance required to cover an additional $3.4 trillion spending deficit stemming from Donald Trump’s One Big Beautiful Bill.
A salvo of tools, including central clearing, supplementary leverage ratio reform, stablecoins, adjustments to the issuance schedule and bond yield
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