Citi: Bessent may reduce the size of U.S. long-term Treasury issuance next month

Citigroup said U.S. Treasury Secretary Bessent may reduce the size of long-term Treasury auctions, and could even completely cancel the issuance of 20-year Treasury bonds. Jason Williams, Citigroup's head of U.S. rates strategy, said the bank's base case is for 20-year and 30-year Treasury auctions to each be reduced by $3 billion per auction, with the gap filled by increased issuance of short-term Treasury bills. The related arrangements will be announced in the Treasury's next quarterly refunding statement on November 4.