US Treasury Secretary Bessent said that regulators may cancel a regulation that has long restricted banks' transactions in US Treasury bonds this summer. Bessent said it is very close to taking action on supplementary leverage regulations. He pointed out that the three major banking regulators, the Federal Reserve, the Monetary Supervisory Service, and the Federal Deposit Insurance Corporation, are dealing with this issue, and “I think we may see results in the summer.” Existing SLR rules require banks to reserve corresponding capital when trading US bonds. Bezent said that abolishing this rule could reduce US Treasury yields by tens of basis points.

US Treasury Secretary Bessent said that regulators may cancel a regulation that has long restricted banks' transactions in US Treasury bonds this summer. Bessent said it is very close to taking action on supplementary leverage regulations. He pointed out that the three major banking regulators, the Federal Reserve, the Monetary Supervisory Service, and the Federal Deposit Insurance Corporation, are dealing with this issue, and “I think we may see results in the summer.” Existing SLR rules require banks to reserve corresponding capital when trading US bonds. Beisent said that abolishing this rule could reduce US Treasury yields by tens of basis points.