U.S. Treasury's Bond Market Intervention Has Short-Lived Effect; Fed Stance Is the Key

English summary

On August 19, the U.S. Treasury announced doubling the size of each long-term bond repurchase from $2 billion to at least $4 billion to lower long-end yields, but yields gave back gains the next day. Fed Chair Kevin Warsh's stance conflicts with Treasury goals, and the Jackson Hole symposium may be a key window for policy direction.