16:19 - 21.08.2026

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August 21, Fineko/abc.az. A report prepared by Bank of America (BofA) strategist Michael Hartnett and his team describes the US Treasury's decision to expand buybacks of long-term bonds as a form of "quasi-quantitative easing" (quasi-QE).

Analysts note that while aimed at lowering government borrowing costs and safeguarding AI sector financing, this intervention will not ensure a sustained drop in bond yields. Should Treasury Secretary Bessent fail to bring the 30-year yield below 5%, downward pressure on the US dollar is expected to intensify alongside mounting short-selling pressure on risky assets, including the financial sector.

Despite the Treasury's buyback initiative, the 30-year yield remains high at around 5.20% due to persistent concerns over mounting US national debt. Turmoil in the fixed-income market spilled over into equities, resulting in weekly losses for the S&P 500 index. Nevertheless, EPFR data shows nearly $29 billion in fresh capital flowed into US equity funds during the week ending August 19, whereas the semiconductor sector suffered its third consecutive week of outflows, totaling $6.3 billion.