Treasury's Clumsy Buyback Just A "Band-Aid On A Bullet Hole" But McElligott Says Losing The Long-End Is Now A Non-Starter

Having warned the world omnisciently last week of the 'crowding out' of the US Treasury (and spotting a $300 billion 'coiled spring of chaos'), Charlie McElligott’s latest note (available to read in full here for pro subs) lands with characteristic clarity and urgency in a market already wrestling with structural pressure on the long end of the curve.

The Treasury’s unexpectedly aggressive buyback signaling - clumsily executed but unmistakably intentional - marks a clear escalation in official willingness to intervene.

Priming The Pump, But It's Gotta Get Worse First