Allianz Group Chief Economic Adviser Mohamed A. El-Erian said U.S. Treasury intervention in the bond market, including using funds from the Treasury General Account to buy bonds, is a concerning strategy that is unlikely to work and would hurt investor confidence. According to Sina Finance, El-Erian said on Monday on "Morning Briefing" that the move does not address the core problem: the government, especially the technology sector, has created huge financing demand through debt issuance, while traditional bond buyers — China, Japan, and Gulf countries — are no longer stable in their willingness to buy.

He said such intervention would only make sense if there were market failure or an institutional breakdown, and he said neither is present. El-Erian also said the worrying point is that market pricing is now forcing the Treasury to keep responding, rather than the Treasury guiding the market.