Treasury shifting long bonds to bills: ~$100M/yr saved per $6B, but rollover risk
Citigroup expects Treasury Secretary Scott Bessent to cut 20-year and 30-year bond auctions by $3B each from Nov 4 and lean on short-term bills, Bloomberg reported.
With long yields near 5.65% and bills near the Fed's 3.75-4% range, every $6B moved short saves ~$100M a year in interest.
The catch: that debt reprices every few months.
Sources: @business: Bessent likely to reduce long-dated auction sizes and could cancel 20-year sales, per Citigroup · X story: Treasury plans $3B cuts each to 20y and 30y sales from Nov 4 refunding; long yields 5.65%
Not financial advice. For informational and educational purposes only.
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