Macro Strategy Insights

The 6 Billion Dollar Man

Yesterday, the Treasury announced their planned repurchase of $6 billion of bonds on their longer-dated buyback operations. The 30-year bond spiked from 5.25% to 5.31% and is hovering just above that level right now. As we discussed in I Am The House Now, the Treasury Secretary’s approach to yen intervention has been more aggressive than any attempts so far to lower longer-term bond yields. In fact, many were expecting as much as $10 billion, so the ensuing sell-off makes sense. We continue to believe the major headwind facing Treasury yields is the Global Supply of Duration. Not just the supply ... The 6 Billion Dollar Man

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