Bonds
Wall Street Panel Endorses T-Bill Supply Scorned by Republicans
- Advisory panel recommends a 20% share for T-bills over time
- Reiterated bills should continue acting as a ‘shock absorber’
The US Treasury building in Washington, DC.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
A panel of market participants that counsels the US Treasury pushed back against criticism the department had used short-term debt issuance to artificially suppress yields on longer-dated securities.
The US government asked the Treasury Borrowing Advisory Committee —- comprised of investors, dealers and other market participants — to take another look at the strategy for T-bills and what should inform issuance of the shortest-dated debt securities at its latest gathering. TBAC had previously recommended a 15% to 20% range.