State Street Investment Management said that although the government can influence market pricing for a period of time, it is difficult to maintain a price level that deviates from fundamentals for a long time. Marciko Lu, a senior fixed income strategist, said, “This expansion of the scale of US Treasury bond repurchases further sends a signal. Policymakers' tolerance for higher long-term yields is limited, but this move hardly addresses the root cause of the problem: the continuing fiscal deficit in the context of inflation still above target levels.” “In some ways, this is reminiscent of a shorting ban. Such measures can slightly affect market behavior, but they hardly change the fundamental operating trend.”

State Street Investment Management said that although the government can influence market pricing for a period of time, it is difficult to maintain a price level that deviates from fundamentals for a long time. Marciko Lu, a senior fixed income strategist, said, “This expansion of the scale of US Treasury bond repurchases further sends a signal. Policymakers' tolerance for higher long-term yields is limited, but this move hardly addresses the root cause of the problem: the continuing fiscal deficit in the context of inflation still above target levels.” “In some ways, this is reminiscent of a shorting ban. Such measures can slightly affect market behavior, but they hardly change the fundamental operating trend.”