Looming US deadline for bank capital may be cause of soaring 10-year rates, page-2

^^ Relevance of the above change in banking regs is that it proposes an alternate reason for the spike in 10-year Treasury yields. Importantly, this driving force is temporary: once the banks have reduced their Treasury holding down to a level sufficient for the regulators, we're done with the Treasury sell-off, and yields stop climbing.

Further, this driving force explains the logical conundrum: why had printing a lot of funny money caused spot gold to go DOWN, not UP. Answer: the two are un-related; except being related in time, and that by coincidence.

Warning: I hold a ton of RMS (and SLR and Wesdome) and clearly it would be natural for my thinking to be biased as heck. Further, just because a change in banking regs is looming, does NOT prove that the world's taste for US 10-year Treasuries isn't otherwise declining - in fact, the world's taste for US Treasuries may well be declining, and gold investors expect that that taste will decline at some point in time as the world moves off the US dollar as a reserve currency. But I think the end-of-March change in bank regs is a reasonable cause of the recent very poor Treasury auctions - particularly including the unusual wide bid-ask spread - and that particular driving force IS temporary.

Lastly, I've used confusing language in the above. Banking regs are not so much changing, on March 31st, as they are reverting to norm. Those US banking regs were RELAXED, last March 2020 as a result of the overnight lending freeze-up/crisis/market crash, and now US regulators are proposing to return to normal regulations.

Short-version: At least some of the recent spike in 10-year rates may be due to US banks being forced to dump Treasuries by March 31st; a one-time event, overlaid on top of a perhaps-occurring longer-term drop in demand for US Treasuries.

See Bloomberg article (link posted above) for details