Citadel Securities has warned against the U.S. Treasury’s decision to expand its long-dated bond buyback program, labeling it as « financial repression. » The maximum buyback size for 10- to 30-year securities has been increased from $2 billion to at least $4 billion per operation, effective from September 9 through November 4, 2026. The policy aims to support liquidity in a bond market segment under significant selling pressure. Citadel fears it could weaken the dollar and drive up inflation, prompting markets to adjust their expectations accordingly. Long-dated Treasury prices have already risen and yields have fallen, creating an environment conducive to higher gold prices.
Source: Read the original article
