Treasury Upsizes Buybacks to $6B but Markets Want More, CYPH Reversal Suggests Possible Consolidation Required

The big catalyst today was the Treasury's announcement of a $6B long-end liquidity support buyback, above the $4B level indicated in August. Recall that the mid-August move off the crypto lows coincided with Treasury signaling a more active approach to duration management, what we have characterized as a Treasury Twist or "YCC-lite." The basic idea is to actively remove duration from the market while financing more...
The big catalyst today was the Treasury's announcement of a $6B long-end liquidity support buyback, above the $4B level indicated in August. Recall that the mid-August move off the crypto lows coincided with Treasury signaling a more active approach to duration management, what we have characterized as a Treasury Twist or "YCC-lite." The basic idea is to actively remove duration from the market while financing more...
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