This is a log scale, but the takeaway is simple: At some point, the market-clearing yield becomes politically unacceptable. Not because the auction is broken—but because the math breaks the government. Mechanically: More Treasury supply → Lower bond prices → Higher yields
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This is a log scale, but the takeaway is simple: At some point, the market-clearing yield becomes politically unacceptable. Not because the auction is broken—but because the math breaks the government. Mechanically: More Treasury supply → Lower bond prices → Higher yields