Dowd: Lower Yields Are Coming... And Nobody Will Like Why

Dowd: Lower Yields Are Coming... And Nobody Will Like Why Authored by Ed Dowd via 'Beyond the Narrative' substack, On August 19th the Treasury announced it would increase the size of its nominal long-end liquidity support buybacks beginning September 9. The long end yields declined on the headline. Cue the usual chorus of X hot takes: stealth QE, yield-curve control lite, money printing etc. The reality is much less bombastic...it is mostly a jawboning exercise. The Treasury Is Not the Fed...The Treasury Cannot Create Money Buybacks of this type are a recycling operation. You...