Refunding Drama: How We Got Here

As discussed here on too many occasions to count over the past week or two, Treasury could relieve some of the accumulated stress at the long-end of the US curve by adjusting issuance to include (even) more bills in the funding mix, reducing anxiety around coupon supply. There are sponsorship concerns for US notes and bonds given an epochal shift in the buyer base, which is skewing more and more towards price-sensitive investors. In short: Price discovery is back, and the clearing price is pret