U.S. Treasury Secretary Scott Bessent announced he would double Treasury’s purchases of long-dated bonds to at least $4 billion per operation in hopes of lowering yields on 30-year Treasuries. Bond traders are not taking this measure seriously, calling it an insufficient « band-aid » against a national debt of $40 trillion. Analysts from ING, Deutsche Bank, UBS, Nomura, and Morgan Stanley all criticized the intervention, deeming it incapable of controlling long-term yields. ING called the initiative a « heinous financial crime », while others compared it to « a finger in the dike » or « paying your mortgage with your credit card ». This situation complicates matters for Fed Chairman Jerome Powell, who is scheduled to give his annual speech at Jackson Hole next week.
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