[The US Treasury Secretary stepped in to expand the repurchase of treasury bond bonds and bet on active intervention to lower the yield of long-term bonds] BlockBeats reported that on August 20, the US Treasury Department announced on Wednesday to expand the scale of long-term treasury bond bond repurchase, which attracted market attention. This move is seen by Wall Street as an important action by Treasury Secretary Besson to directly alleviate the pressure on long-term US bond yields and reduce government financing costs. The Ministry of Finance said that from September 9 to November 4, it would at least double the maximum size of a single buy back of 10-year to 30-year US treasury bond bonds, from $2 billion to $4 billion. After the news was announced, the yield of long-term US treasury bond bonds fell rapidly. The yield of 30-year US treasury bonds once fell nearly 10 basis points, and US stocks rose simultaneously. The market believes that although this operation is officially positioned as a technical measure to enhance the liquidity of the bond market, the core goal is to curb the continuous rise of long-term yields. BNP Paribas estimates that, according to the current pace, the Ministry of Finance may buy back about 128 billion US dollars of treasury bond of relevant maturity in a year, which is equivalent to about 30% of the issuance of treasury bond of that maturity, but only accounts for about 2.4% of the outstanding debt in the market. Jim Bianco, founder of Bianco Research in the United States, said that in the past, the market used to say that "bond traders can stop panicking when the Federal Reserve starts panicking," but now it should be changed to "bond traders can stop panicking when Benson starts panicking. Recently, the yield of the 30-year treasury bond bond of the United States broke 5.3%, a new high in the past 20 years, and the average housing loan interest rate was close to 7% again. At the same time, the total federal debt in the United States has exceeded $40 trillion, and the fiscal deficit still accounts for about 6% of GDP. The market continues to be concerned about government debt pressure. Besson previously served as a hedge fund manager and has since taken on multiple non-traditional market operations, including adjusting debt issuance strategies, promoting regulatory reforms, and participating in foreign exchange market interventions. Some market participants believe that its policy style has a clear "hedge fund style" macro trading mindset. However, some analysts warned that the treasury bond bond repurchase could not solve the long-term fiscal deficit and debt growth of the United States. Robin Brooks, a researcher at the Brookings Institution, said that this move is more like "manipulating the yield curve" rather than addressing the root of debt. The market is currently concerned whether the proactive intervention of the Ministry of Finance can continue to lower US bond yields or only bring short-term market relief. Analysts point out that if fiscal spending and debt growth issues cannot be improved, relying solely on repurchase operations will not be able to change the long-term trend of the US Treasury market. [Original link]