US Fed has not announced whether it will (again) extend March 31...

US Fed has not announced whether it will (again) extend March 31 deadline, which ends a Covid-era loosening of regs that made it easier for banks to hold Treasuries. Did this looming deadline cause the recent Treasury auction bid-offer gap, and yield spike?

https://www.bloomberg.com/news/articles/2021-03-02/a-21-trillion-treasuries-mystery-is-bedeviling-global-markets?srnd=premium

IMO interesting facts suggesting recent 10-year US Treasury spike (and corresponding spot gold dive) may be caused by looming deadline for tighter capital requirements on US banks; rather than by helicopter money, as has been speculated. Apparently there was a wide bid-offer gap at recent Treasury auctions, raising concerns of illiquidity in these commonly-liquid large markets.

Suggests gold investors may want to look deeper at causes of bond rout; those causes may be other than helicopter money. In brief, the reg that the Fed may be unwinding on March 31 was one, put in place at the beginning of Covid, that made it easier for US banks to hold Treasuries on their books.