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Tsy Sec Bessent got into hedge fund manager mode in his interview on Fox Business - he doesn't sound concerned about what's going on in yields, saying (paraphrasing):

• There's one of those "deleveraging convulsions" going on right now in markets - it's large leveraged players experiencing losses having to deleverage. Don't think anything systemic about this.

A quick note on  mention of SLR for those who aren't following: potential for reforming the Supplementary Leverage Ratio rule for large banks was what led to the widening in swap spreads earlier this year. And part of the collapse in swap spreads (ie moving well below Tsy yields - 10Y spread is in the chart below) in the last week has been seen as in part a continuation of the unwind of this trade, among other potential factors including market participants selling Treasuries to raise liquidity. 

As Bessent suggested in his Fox Business interview, deregulation could help open up room on US bank balance sheets to hold Treasuries.

• The Trump administration is firmly behind these reforms. Recall that, in somewhat excellent timing, Fed Governor Bowman has a Senate nomination hearing to be appointed Vice Chair for regulation at the Fed on Thursday - she sparked the widening in swap spreads when she said in early Feb that "where we can take proactive regulatory measures to ensure that primary dealers have adequate balance sheet capacity to intermediate Treasury markets, we should do so. This could include amending the leverage ratio and G-SIB surcharge regulations for the largest U.S. banks."

Bessent says he will discuss the topic at an American Bankers Association event that starts at 0830ET - the ABA is livestreaming on X.com here:

Steepener Block posted at 0823:50ET:

• +10,800 FVM5 107-29, post time bid vs.
• -4,060 USM5 112-26, well through 112-30 post time bid.

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• The latest tranche of President Donald Trump's tariffs went into effect today, including a punitive tariff hiking duties on Chinese imports to at least 104%. In response, China announced it will raise its tariff on US imports from 34% to 84%, with the measure set to take effect within hours. There is more to come, with Trump promising yesterday a “major” tariff on pharmaceuticals would be announced “very shortly.”
• The prevailing view amongst analysts is that the Trump administration is signalling a willingness to negotiate deals but it is unclear how quickly talks can proceed or what kind of deals could be on the table.
• Treasury Secretary Scott Bessent told Fox Business this morning that a Vietnamese delegation is in Washington today for tariff talks. Polymarket views Japan as the most likely country to see a tariff deal.
• White House Press Secretary Karoline Leavitt confirmed that Italian Prime Minister Giorgia Meloni will become the first European leader to meet face-to-face with Trump since the imposition of tariffs.
• The EU is working on retaliatory measures that will target Republican states.
• USTR Jamieson Greer will testify again on the Trump administration’s trade policy.
• Trump ratcheted-up pressure on rebellious House Republicans to back a Senate-approved budget blueprint. Speaker Johnson has teed up a Rules hearing today towards bringing the budget to the floor.
• Poll of the Day: Roughly 50% of Americans say short-term economic pain is worth it.

Full Article: US DAILY BRIEF