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[Breaking] The Treasury takes a risky move—accelerating the purchase of long-term U.S. Treasuries. [Mid-section] Don't overthink it; it has nothing to do with QE! ┈➤ Why is this move clever? Previously, Brother Feng summarized that after around July 24, the yields on short-term U.S. Treasuries of one year or less have been declining, indicating short-term bonds are being snapped up. So now the Treasury is simultaneously accelerating the issuance of short-term debt while speeding up the purchase of long-term debt. ◆ Short-term debt operation: increase supply to slow or even reverse price increases, thereby slowing or reversing the decline in yields. ◆ Long-term debt operation: reduce supply to slow or ideally reverse price declines, causing yields to slow their rise or ideally fall. This also affects market expectations, so people really do buy long-term bonds, which is why today's 30-year Treasury yield dropped in response: opening at 5.285%, now down to 5.2%. As the long-term U.S. Treasury yield, the risk-free rate, falls, this is a short-term positive for risk assets. From the Treasury's perspective, think about it: borrowing at an annualized rate of about 3.8% to repay liabilities at around 5% annualized is definitely beneficial in the short term! Moreover, short-term yields are trending downward, while long-term yields are trending upward. #30年期美债收益率创2007年以来新高