1024 ET - Speculation over a possible synchronization between the Fed and the U.S. Treasury is raising questions among investors, Bank of America economists write. Such an accord "is not well defined," although the possibility is likely already priced in, BofA says. "Any new accord is unlikely to see material price action unless it extends beyond current market discussion." The pact would revolve mostly around Fed balance sheet reduction and Treasurys' issuance, BofA says. The economists expect a larger impact on markets if monetary policy is affected--which they consider very unlikely--or the Treasury curbs long-end issuance, which BofA sees as possible. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

February 12, 2026 10:24 ET (15:24 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.