Treasury's Double Or Nothing Bet on Bond Market Stability The Treasury Department has more than doubled its government debt repurchases in a bid to stabilize the bond market.
However, a closer examination reveals that this move is driven by short term politicking rather than long term fiscal responsibility.
Market stress has reached unprecedented levels, and the Treasury's decision to target the sensitive longer duration segment of the market – specifically the 10 to 20 year and 20 to 30 year segments – appears to be a desperate attempt to stem rising yields.