Just a Temporary Respite? Wall Street Warns: Structural Pressure on Long-End Bonds Far Beyond What One Buyback Can Resolve

The U.S. Treasury's expansion of long-end bond buybacks triggered a brief rebound in global bond markets, but institutions warn that the spillover effect is limited. Under multiple pressures including swelling fiscal deficits, stubborn inflation, and a wave of AI-related debt issuance, the structural upward trend in long-end yields remains unchanged. Overseas bond markets such as Europe lack policy support, and optimism is rapidly cooling.