Overview
- Last week the Treasury said it would at least double buybacks of longer-dated Treasuries to try to push down long-term yields.
- Chair Kevin Warsh has sharply cut Fed public guidance and stopped giving clear rate forecasts, leaving markets to read price moves for policy signals.
- Long-term yields have climbed to multi-year highs, with 10- and 30-year rates rising toward levels not seen in nearly two decades and increasing market volatility.
- Economists and investors say Treasury interventions add uncertainty and could weaken inflation-fighting by hiding the true cost of government borrowing.
- Markets are focused on Warsh’s Jackson Hole speech on Friday for signs he will restore clarity or let Treasury actions and political pressure shape rate expectations.