10:38 - 25.08.2026

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August 25, Fineko/abc.az. Strategists at Wall Street giants such as Goldman Sachs and Wells Fargo have warned that the US Treasury Department's expanded long-term bond buyback program will prove ineffective in reversing the upward trend in yields.

An analysis released by Goldman Sachs strategists noted that the Treasury's decision to step up long-dated buybacks fails to address the root causes of recent market volatility. The report stated that even if the buyback scale is further increased, these actions are unlikely to deliver a meaningful and lasting drop in interest rates.

Similarly, Wells Fargo strategists emphasized that fundamental macroeconomic shifts are required to pull long-term yields lower. They noted that without a slowdown in growth and inflation, reduced uncertainty surrounding Fed policies, or strict fiscal discipline, a new catalyst will be needed for a sustained decline in rates.

Strategists from Societe Generale, Deutsche Bank, and Scotiabank project that, contrary to Treasury Secretary Scott Bessent's goals, long-term yields will continue to climb faster than short-term rates. Despite Bessent highlighting a "broad toolkit," market participants argue that such measures will remain superficial unless Washington directly addresses expanding budget deficits and persistent inflationary pressures.