Core Viewpoint - The Trump administration's call for significant interest rate cuts by the Federal Reserve, combined with the prospect of increased short-term bond issuance, may disrupt the Treasury bond market and ultimately raise long-term borrowing costs [1] Group 1: Federal Reserve and Interest Rates - The Federal Reserve is under pressure from the Trump administration to lower the benchmark interest rate to stimulate the U.S. economy [1] - This pressure could lead to a scenario where bondholders lose confidence in the Fed's commitment to maintaining the real value of their principal [1] Group 2: Treasury Bond Market Dynamics - Increased issuance of short-term Treasury bills, as suggested by Treasury Secretary Mnuchin, may be a strategy to save on interest expenses in the current high-yield environment [1] - If the Fed appears more focused on government financing rather than protecting bondholders, it could trigger bond sell-offs and an increase in term premiums [1]