Bessent Axing 20-Year Treasury May Send Yields Higher, BNP Warns
Mint 1 hr ago·6 Oct 2026, 8:45 pm
BNP Paribas has cautioned that removing the 20‑year Treasury security from the market could lift long‑term yields. The 20‑year note sits in the middle of the Treasury curve and helps set rates for mortgages, corporate bonds and other credit products.
If yields rise, borrowing costs for businesses and households may increase, which can weigh on profit margins and consumer spending. Higher rates also make existing bond holdings less valuable, prompting portfolio adjustments that often spill over into equity markets.
Investors should monitor any official statements about the 20‑year issue, movements in the 20‑year yield, and broader monetary‑policy cues that could amplify or dampen the impact.
Excerpt from Mint
Treasury Secretary Scott Bessent should resist calls to ax the 20-year bond, as doing so could send borrowing costs higher, according to BNP Paribas SA. (Bloomberg) -- Treasury Secretary Scott Bessent should resist calls to ax the 20-year bond, as doing so could send borrowing costs higher, according to BNP Paribas…Read the original at Mint
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