Why this banking proposal may mean good news for the bond market and investors - MarketWatch

1. U.S. regulators propose lowering capital requirements for systemically important banks. 2. Easing rules may increase bank purchases of U.S. government debt significantly. 3. Concerns about future demand for Treasurys could lead to market volatility. 4. Banks like BAC could benefit from more flexibility in Treasury investments. 5. Debate exists on whether SLR changes will greatly influence Treasury demand.