BNP Warns That Axing 20-Year Treasury Could Push Yields Higher

Treasury Secretary Scott Bessent should resist calls to eliminate the 20-year bond because doing so could drive borrowing costs higher, BNP Paribas warned.

Strategists at BNP Paribas noted that scrapping the 20-year maturity could signal tool exhaustion and encourage bond vigilantes, leading to lower liquidity.

The 20-year Treasury yield traded at 5.68% on Tuesday after reaching 5.75% a day earlier, which is its highest level since its reintroduction in 2020.