US Treasury's Bond Market Intervention Effect Short-Lived; Fed Stance Is Key

English summary

The U.S. Treasury announced an expansion of long-term Treasury buybacks to suppress long-end yields, but the market sees the effect as short-lived and requiring Fed cooperation. Fed Chairman Warsh advocates shrinking the balance sheet and tilting toward short-term bonds, conflicting with Treasury goals. The Jackson Hole meeting becomes a key node for observing policy direction.