US Bonds Gain as Official Says Capital Rule Change Is on Agenda
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US government debt rallied Tuesday, erasing declines after a Treasury Department official said a rule change was under consideration that could lower trading costs for banks.
While the rule change mentioned by Deputy Treasury Secretary Michael Faulkender has been on the radar for years, his comments on the Supplementary Leverage Ratio, or SLR, helped drive yields lower by as much as seven basis points for some tenors, to levels last seen during last week’s market turmoil. Yields remained lower by as much as four basis points in late trading.