Investors and analysts poured scorn on US Treasury Secretary Scott Bessent’s doubling of long-term bond purchases last week, which provided temporary relief but faces structural economic headwinds that are driving yields higher.
The buybacks are a “band-aid on a bullet hole,” a Nomura strategist told the Financial Times, while ING analysts likened it to “rearranging deckchairs on the Titanic.”
Jefferies’ chief US economist said the abrupt nature of Bessent’s move damaged the Treasury’s credibility, increasing investor skepticism.
It would take a smaller US budget deficit, a stock market contraction, or decline in AI investment to depress longer-term yields, Satori Insights’ founder told Bloomberg: “Every route to lasting relief for the long end runs through something the administration doesn’t want.”