BNP Paribas warns on US Treasuries
BNP Paribas warned that eliminating the 20-year US Treasury bond could increase borrowing costs rather than reduce them.
According to the bank, such a move could weaken market liquidity and push long-term Treasury yields even higher.
BNP Paribas strategists said removing the 20-year bond could be interpreted by markets as a sign that the US Treasury is running out of options. The bank expects the 30-year Treasury yield to rise from 5.64% to 5.8% and maintained its short-position recommendation.
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