Bessent Sees Easing Capital Rule on Treasuries This Summer (Full Interview)

Video Description

Treasury Secretary Scott Bessent says US regulators may ease the supplementary leverage ratio (SLR) rule, which constrains banks' trading in the $29 trillion Treasuries market, this summer. Tweaking the SLR could reduce US Treasury yields by tens of basis points, as it requires banks to hold capital when trading against their investments in Treasuries. The SLR's applicability to Treasuries was suspended during the Covid crisis, but it's since been reinstated, with Bessent and Federal Reserve Chair Jerome Powell previously expressing support for tweaking the rule. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake