🇺🇸 U.S. DEPARTMENT OF THE TREASURY DOUBLES ITS BOND BUYBACK TO COOL DOWN YIELD
📊 The U.S. Treasury has just announced a scale-up of its long-term bond buybacks from up to $2 billion to at least $4 billion per tranche, effective from 9/9. The move comes after the 30-year Treasury yield hit 5.34%, the highest level since 2007.
👉 The market reacted almost immediately. Both the 10-year and 30-year yields fell sharply, while stocks rebounded as pressure from the bond market temporarily eased.
📈 But this is not QE. The Treasury is buying back part of the outstanding bonds to improve liquidity and support the market, not the Fed injecting money into the system.
⚠️ More importantly, the underlying cause behind the surge in yields has not disappeared: a large budget deficit, rising debt levels, and investors demanding higher yields. Therefore, this action may help stabilize the market in the short term, but it has not solved the long-term fiscal problem.
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📊 The U.S. Treasury has just announced a scale-up of its long-term bond buybacks from up to $2 billion to at least $4 billion per tranche, effective from 9/9. The move comes after the 30-year Treasury yield hit 5.34%, the highest level since 2007.
👉 The market reacted almost immediately. Both the 10-year and 30-year yields fell sharply, while stocks rebounded as pressure from the bond market temporarily eased.
📈 But this is not QE. The Treasury is buying back part of the outstanding bonds to improve liquidity and support the market, not the Fed injecting money into the system.
⚠️ More importantly, the underlying cause behind the surge in yields has not disappeared: a large budget deficit, rising debt levels, and investors demanding higher yields. Therefore, this action may help stabilize the market in the short term, but it has not solved the long-term fiscal problem.
👇 HOT COINS TRADING HERE 👇
$HEMI
$TREE
$MUBARAK