Treasury yields dip but continues to probe the top of the range
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There is something disquieting about a government fighting markets. There is a certain futility about it in large part because it rarely works. When it does work, it's usually of the Mario Draghi "whatever it takes" variety and some dramatic actions. Treasury Secretary Bessent ta
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4 itemsRates Spark: Heavy Treasuries and tight eurozone liquidity
Rates Spark: The Treasury’s plan for the back end
The US Treasury's recent move to double buybacks of longer-dated bonds signals a clear attempt to control the upward pressure on long-term yields. Per the full note from ing-think, this could reflect discomfort with the recent sell-off in 10-30 year securities, with yields already down 5-10 basis points following the announcement. Maintaining liquidity in this segment is vital for the Treasury, particularly as these measures may need to be repeated frequently if market conditions warrant. Current consensus targets are mixed, suggesting a cautious approach from institutional traders.