1. U.S. plans to lower the supplementary leverage ratio for banks. 2. Bessent claims this could reduce long-term Treasury yields. 3. Concerns exist over bank willingness to buy more Treasurys. 4. Recent bond market selloff raised TMUBMUSD30Y yields near 5.09%. 5. Ability to lend could stimulate economic growth according to Bessent.
While the plan could theoretically lower yields, skepticism remains about banks' actions. Historical precedents suggest uncertainty could keep yields elevated despite policy changes.
The article addresses policies directly impacting Treasury yields, but mixed signaling reduces confidence. Thus, its relevance is significant, though tempered by skepticism from analysts.
Expect market reactions to be immediate following news, but longer-term changes are uncertain. Recent selloff indicates volatility in the near term but potential stabilization may follow.