Reported 27 days ago
The Trump administration's commitment to controlling long-term U.S. Treasury yields is raising expectations for a potential review of bank leverage requirements. Traders are speculating that regulators may reassess the Supplementary Leverage Ratio (SLR), which mandates U.S. banks to hold extra capital against government debt, thereby potentially increasing demand for Treasuries and lowering yields. This shift is seen as crucial for market liquidity, especially in light of increasing government debt and ongoing regulatory reforms aimed at enhancing Treasury market functioning.
Source: YAHOO