Bank of America Says US Can Lower Debt Cost by Going Bespoke

The US government can mitigate the effect of rising long-term Treasury yields on its cost of borrowing by taking a page from the credit markets, according to Bank of America Corp. strategists.

Their proposal is a so-called reverse inquiry window, by which debt is sold directly to investors in response to bespoke requests. Though common in some of the more esoteric corners of the global bond market, it would be a novelty in the $31 trillion Treasury market.