Refunding Preview: Rising Risk Of Treasury Sell-Off On Spike In US Funding Needs

Traders hoping for aggressive Treasury action to lower yields at Wednesday's upcoming refunding are likely to be disappointed, according to DB's Steven Zeng. Instead, the rates strategist thinks that major shifts in issuance strategy are unlikely given Treasury's strong institutional commitment to being "regular and predictable". Meanwhile, the combination of a technical upward revision to near-term borrowing and elevated expectations