The GENIUS Act may drive short-term U.S. Treasury demand, as the Treasury's issuance strategy is under follow.

[Chain News] PANews, July 22 - According to reports, UBS previously expected that the rapid expansion phase of short-term U.S. Treasury bonds in the proportion of circulating debt has passed. However, the GENIUS Act may bring a new round of growth. According to this act, stablecoin issuers must maintain 100% reserve backing with short-term, highly liquid, and high-quality assets. Approved reserve assets include: U.S. dollar cash, short-term U.S. Treasury bonds, deposits from custodial institutions, and short-term Treasury repurchase agreements. After the debt ceiling issue is resolved and there is a significant expansion of government money market funds, the current short-term U.S. Treasury market still has ample absorption capacity. If the GENIUS Act stimulates more demand for short-term Treasury bonds, the U.S. Treasury may slightly delay the expansion of the issuance scale of interest-bearing Treasury bonds, and also have greater space to repurchase illiquid old bonds. In any case, UBS expects the Treasury to continue to maintain a stable relative proportion of short-term Treasury bonds to interest-bearing Treasury bonds.