Treasury Secretary Scott Bessent's plan to double long-term bond purchases to $4bn monthly was dismissed as a "band-aid on a bullet hole" by investors worried about the $40tn debt burden and inflation. The $32tn Treasury market rallied briefly before yields resumed climbing.

Jim Caron at Morgan Stanley and Charlie Mc Elligott at Nomura argue the Treasury cannot control long-term yields. Thomas Simons at Jefferies said the surprise announcement damaged credibility.

The buyback expansion, starting September 9, may force more short-term debt issuance, exposing the Treasury to rate fluctuations—a policy Bessent criticized Janet Yellen for in 2024. The Congressional Budget Office projects a 5.8 per cent deficit this year, far above Bessent's 3 per cent target by 2028.

Analysts including Sarah Bianchi at Evercore and Scott Di Maggio at Alliance Bernstein say lasting relief requires Federal Reserve action and fiscal consolidation. Robert Tipp at PGIM called it "a finger in the dike" amid rising rates and fiscal profligacy.