In order to stop the recent rapid rise in bond yields, Treasury Secretary Scott Bessent announced today that the US Treasury would double its buyback program for long-dated bonds between durations of 10-30 years. This effectively puts a bottom in on the price of Treasuries right at a time when the pendulum was swinging towards higher yields.
As with all market manipulations, there are always ramifications that can ripple through financial markets. The Treasury's efforts are like a drug dealer buying his own stash to keep prices up because all of his buyers are either dead or in rehab. Today's announcement is no different.
