JPMorgan Asset Management Urges U.S. Treasury to Scrap 20-Year Bond

Bob Michele of JPMorgan Asset Management has advised U.S. Treasury Secretary Bessent to eliminate the 20-year Treasury bond. Ahead of the Treasury's announcement of its quarterly debt issuance plan on Wednesday, Michele, global head of fixed income at JPMorgan Asset Management, said, "Nobody likes the 20-year bond, so why issue it? It made sense in a different era. That era is over." Long-term Treasury yields have recently surged to their highest level since 2002, and the market speculates that the Treasury will shift its issuance focus toward shorter-maturity bills and intermediate notes in the coming months. However, completely scrapping the 20-year bond remains a low-probability tail scenario, and none of the dealers surveyed considers it their baseline expectation. (Caixin)