The Treasury under Bessent is deliberately pushing debt issuance to the short end of the curve and raising the bank leverage ratio to induce bank carry trades—potentially unleashing ~$3 trillion of new buying—to negate the bond market's supply/demand mismatch and avoid paying 5-6% on longer-term financing.
causalpending
Speaker
Bill FleckensteinEvidence Quote
“get as much financing done at the short end and create as much pressure as possible uh to um as many incentives as possible to induce buyers into that part of the curve. That's why they changed the bank leverage ratio”
Source
Bill Fleckenstein: We've Gone Past The Point Of No Return, Only An Epic Crisis Can Fix— The Julia La Roche ShowCreated: 6/18/2026, 1:58:45 PM
My Notes
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