How Treasury Bonuses Are Changing the Primary Dealer Game

Episode 48 of The Bond Investing Podcast: Lucas and Luna unpack the quiet revolution in Treasury issuance — the reintroduction of coupon bonuses for primary dealers. With the 10-year yield at 4.45 and the 30-year at 4.95, the Treasury is tweaking auction mechanics to improve liquidity and reduce volatility. Lucas explains how the 'when-issued bonus' works, why it matters for the $27 trillion Treasury market, and what it means for bond investors watching the yield curve. They also discuss the role of dealer balance sheets, the impact on the 5-year note at 4.21, and why this could be the most consequential operational change in years. Plus: a light-touch listener support moment. Specific, data-driven, and focused on one concrete angle: the mechanics of Treasury auctions and their ripple effects. #TreasuryAuction #PrimaryDealers #BondMarket #YieldCurve #10YearYield #30YearYield #5YearNote #TreasuryBonds #Liquidity #AuctionMechanics #FixedIncome #Finance #Investing #FexingoBusiness #BusinessPodcast #BondInvesting #CouponBonus #WhenIssued Keep every episode free: buymeacoffee.com/fexingo