The growing involvement of the US Treasury in establishing prices within the government bond market leaves me somewhat uneasy, and this hesitation stems from a couple of primary concerns.

My initial reservation relates to historical precedent. When authorities step in to manage prices, the outcomes tend to be unreliable unless the specific goal is to resolve market failures or prevent massive institutional crises. Given our current landscape, neither of those extreme conditions appears to be present.

Furthermore, the unfolding situation highlights a distinct vulnerability regarding who is actually in control. It is generally detrimental when financial markets are the ones constantly forcing government officials to enact drastic measures. Ideally, authorities should be guiding the markets, rather than the reverse taking place.

#economy #markets #bonds