The US Treasury's updated plans for debt sales, a signature event for bond dealers every quarter, now loom also as a politically sensitive one, after…

Investors are focused primarily on the Fed, currently pricing in at least two quarter-point interest rate cuts before the end of the year.

"Investors still have faith that the dollar itself, regardless of the state of the actual government, will continue to be the global currency of choice and keep value in a fraught political situation."

After a combined 1,475 bps in increases, the U.S. Fed, ECB, and BOE are expected to reduce rates by only 575 bps by the end of next year.

The goal is to strengthen resilience in the $26 trillion U.S. Treasuries market, which has been roiled in recent years by sudden freezes in trading.

Though the how, why, and when remain murky, bond traders expect currently inverted Treasury yield curves to soon normalize.

The Treasury Department announced an increase in planned sales of longer-term securities that is slightly lower than most dealers expected.

Quantitative tightening is "an underappreciated risk" that might keep bond yields higher for longer. Auctions of 10- and 30-year Treasuries were poorly received this month, and supply will keep increasing, thanks to the widening budget deficit.