For Bond Dealers, It’s All About Bills at Bessent’s Treasury

Since Scott Bessent took the Treasury’s helm in January, bond dealers have done a 180 on the key question about his issuance strategy in the $29 trillion market for US Treasuries.

At the start, the focus was how quickly he might ramp up sales of longer-term securities. That’s after Bessent and other Republicans accused former Treasury Secretary Janet Yellen for artificially holding down sales of that kind of debt, and said it was an attempt to keep borrowing costs low before the election.