Treasury Boosting Refunding Plan to $102 Billion

The video discusses the U.S. Treasury's decision to increase its quarterly refunding of long-term Treasuries to $102 billion, marking the first increase since early 2021. The discussion highlights the challenges in matching supply with demand, given the reduced appetite from banks and foreign investors. Global factors, such as the Bank of Japan's yield curve control, are also affecting demand. The video explores the potential for increased market volatility due to these dynamics, with hedge funds likely to play a significant role as marginal buyers.

What are the implications of the supply-demand backdrop for Treasury yields?

What does the speaker suggest about the future volatility in the Treasury market?