US Treasury Doubles Long-Dated Bond Buybacks to $4 Billion; Fed Officials Reaffirm Policy Independence

English summary

On August 20, the US Treasury unexpectedly doubled its long-dated bond buybacks to $4 billion, briefly pushing down yields before they rebounded. Two Fed officials reaffirmed the central bank's independent decision-making; St. Louis Fed President Musalem hinted at favoring a September rate hike, while San Francisco Fed President Daly said long-term yields offer limited signals. Markets are focused on the tug-of-war over who drives financial conditions.