U.S. Treasury Seen on Track to Become More Interventionist

Dow Jones
Aug 27

0515 GMT - The U.S. Treasury is expected to be more interventionist, pursuing incremental adjustments rather than dramatic changes to debt management, following the announcement of doubling long-end securities buybacks, Deutsche Bank strategists say in a note. "We also expect increased communication outside the quarterly refunding process, with Treasury using active signaling more extensively as a policy tool," they say. Treasury could leverage flexibility in the language of last week's announcement to increase long-end operation sizes beyond the initial suggested minimum of $4 billion, the strategists say. "Long-end buybacks regularly attract as much as $20 billion in offers, giving Treasury substantial scope to increase operation size in the near term." Treasury could also maintain operational flexibility by releasing its updated buyback schedule without specifying long-end operation sizes, they say.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10