Bank of America proposes reverse inquiry window for US debt sales
Updated
Updated · Bloomberg · May 5
Bank of America proposes reverse inquiry window for US debt sales
3 articles · Updated · Bloomberg · May 5
The strategists said the approach could help the US government curb borrowing costs as long-term Treasury yields rise in the $31 trillion market.
Under the proposal, debt would be sold directly to investors in response to bespoke requests rather than only through standard issuance methods.
Such reverse inquiry deals are used in some niche global bond markets, but adopting them for US Treasuries would be a novel step.
How might tailoring US debt offerings to investor requests impact borrowing costs, market stability, and the traditional role of Treasuries worldwide?
Could a reverse inquiry window for US Treasuries transform global debt markets, or does it risk increasing volatility and favoring large investors?
What safeguards would prevent a direct issuance system from concentrating power among a few investors or destabilizing the $31 trillion Treasury market?