BofA's Hartnett: Bessent Using "Stealth QE" to Defend 5% 30-Year Treasury Yield "Maginot Line"

BofA chief investment strategist Hartnett views the U.S. Treasury's expanded long-term bond buyback program as "stealth QE," warning that QE can only cap yields, not push them lower. He cautioned that if the 30-year Treasury yield fails to fall back below 5%, policy credibility will be further damaged, potentially triggering a dollar selloff and shifting capital toward shorting highly leveraged AI assets, private credit, and financial stocks.