Interest rate strategists at Wall Street institutions such as Goldman Sachs and Wells Fargo said that the US Treasury's treasury bond repurchases have limited effect on reversing the sharp rise in long-term US bond yields. Although 10-year and 30-year US Treasury yields declined for a while after the Treasury announced an expanded repurchase program on Wednesday, they rose again late last week. Meanwhile, US Treasury Secretary Scott Bessent said he has a “huge policy toolbox” in his hands. CNBC reports that he may use part of the Treasury's cash reserves to buy back these treasury bonds. This kind of market trend confirms Wall Street's view. Analysts and investors say such measures will not work unless Washington addresses problems such as growing budget deficits and inflationary pressures that drive higher yields. Goldman Sachs strategists, including George Cole and William Marshall, wrote in an August 21 research report, “The US Treasury's decision to expand the repurchase of long-term treasury bonds has not addressed what we believe is the main cause of recent fluctuations in long-term interest rates.” They said, “We believe that even if the scale of repurchases is expanded, the repurchase operation itself is unlikely to substantially change the interest rate level.”

Interest rate strategists at Wall Street institutions such as Goldman Sachs and Wells Fargo said that the US Treasury's treasury bond repurchases have limited effect on reversing the sharp rise in long-term US bond yields. Although 10-year and 30-year US Treasury yields declined for a while after the Treasury announced an expanded repurchase program on Wednesday, they rose again late last week. Meanwhile, US Treasury Secretary Scott Bessent said he has a “huge policy toolbox” in his hands. CNBC reports that he may use part of the Treasury's cash reserves to buy back these treasury bonds. This kind of market trend confirms Wall Street's view. Analysts and investors say such measures will not work unless Washington addresses problems such as growing budget deficits and inflationary pressures that drive higher yields. Goldman Sachs strategists, including George Cole and William Marshall, wrote in an August 21 research report, “The US Treasury's decision to expand the repurchase of long-term treasury bonds has not addressed what we believe is the main cause of recent fluctuations in long-term interest rates.” They said, “We believe that even if the scale of repurchases is expanded, the repurchase operation itself is unlikely to substantially change the interest rate level.”