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20s On The Radar In Lieu Of Buyback Announcement

US TSYS

It will be interesting to see if Treasury’s freshly announced buyback scheme promotes any structural richening in 20s, despite Treasury rhetoric which noted that “Treasury anticipates designing a buyback program that will be conducted in a regular and predictable manner, initially sized conservatively, and not intended to meaningfully change the overall maturity profile of marketable debt outstanding.”

  • The case for that move is obviously more questionable than it was in mid-22, given the adjustment in auction sizes seen since then.

Fig. 1: U.S. 10-/20-/30-Year Tsy Butterfly

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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