🦔The Treasury just announced it's doubling its buybacks of long-term government bonds, from $2 billion to at least $4 billion per operation, starting September 9. Yields dropped immediately, with the 30-year falling 9 basis points to 5.19% and the 10-year dropping 6 basis points to 4.65%. Stocks rose. But the buybacks aren't a debt paydown. The Treasury pays for them by issuing more short-term bills, so it's shifting the debt from long-term to short-term, not reducing it. My Take Three weeks ago the US and Japan spent billions buying yen to prop it up. The yen gave back most of the gains in under three weeks. Now the US Treasury is intervening in its own bond market, and I think it ends the same way. Buying back long bonds pushes yields down today, but it doesn't shrink the deficit or slow the borrowing. All it does is move the debt from 30-year bonds into short-term bills that roll over more often at whatever rate exists when they come due. The market rallied because it likes seeing Bessent willing to act, and I understand the relief. But the reasons yields climbed to 19-year highs last week are all still in place, and a $4 billion buyback doesn't change any of them. Governments keep reaching for the same tool, spend now and hope something changes before it wears off. The yen intervention bought about three weeks and I'd be surprised if this one buys much more. Hedgie🤗