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Goldman Warns Treasury Buybacks Won't Cut Long Rates

Bloomberg Markets •
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Interest-rate strategists at Goldman Sachs Group Inc. and Wells Fargo & Co. stated that the US Treasury Department's bond buybacks will have limited impact on reversing the rise in long-term yields. Although yields on 10- and 30-year Treasuries briefly fell following the Wednesday announcement, they rebounded later in the week. Treasury Secretary Scott Bessent affirmed he possesses a "big toolkit" and may deploy cash reserves to purchase securities, though strategists remain skeptical of the policy's effectiveness.

The announcement initially eased market pressure but failed to provide sustained downward pressure on bond rates.