Treasury’s 20-Year Bond Opens a Chasm in Supply Outlooks
- Annual forecasts range from $116 billion to $192 billion
- Some strategists say 10- and 30-year could face steep cuts
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Taken by surprise by the U.S. Treasury’s plan to resume selling 20-year bonds, Wall Street dealers now have to guess how much of the debt to expect and the implications for existing maturities.
Figuring out how the new 20-year year will fit into the current framework is no mean feat, and getting it right is important -- the department’s decision on the matter could roil valuations across all maturities.