TechFlow, Dec 1 - Strategists at Societe Generale said in a report that the U.S. Treasury is expected to delay testing investor demand for longer-dated debt. The strategists noted: "We expect 2026 to be characterized by elevated bill issuance and steady coupon supply, driven by persistent large deficits and volatile tariff revenues." They pointed out that policy preferences continue to favor short-term funding, while the Fed's reinvestment and reserve management purchases should help absorb bill supply—though front-end rate volatility remains a key risk. The strategists wrote: "This allows the Treasury to postpone testing demand for longer-dated debt until market conditions and policy preferences become more favorable." (Jinshi)
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