Bessent axing the 20-year would backfire, BNP warns — higher yields and worse liquidity, not lower borrowing costs. Guneet Dhingra calls it a move that reads as panic and invites bond vigilantes; BNP

What happened: BNP Paribas SA warned that Treasury Secretary Scott Bessent should resist calls to eliminate the 20-year bond, saying such a move could push borrowing costs higher. Key numbers: 20-year yield traded at 5.68% Tuesday after hitting 5.75% Monday, its highest since its 2020 return. BNP targets a 30-year yield rise to 5.8% from 5.64%. Why it matters: BNP strategists said eliminating the 20-year could be seen as panic and signal exhaustion of the Treasury's toolkit, encouraging bond vigilantes. They kept a recommendation to short 30-year Treasuries.

Bessent axing 20-year Treasury may send yields higher, BNP warns.

Bessent axing 20-year Treasury may send yields higher, BNP warns. — impact context not separately stored; see What changed.