US Treasury Buyback "Signal Significance" Outweighs "Actual Effect"! Nomura: If Market Continues to Deteriorate, Fed Will Step In with "YCC or QE"

The US Treasury hastily launched a debt buyback program, and Nomura Securities strategist McElligott hit the nail on the head: this is merely a "Band-Aid on a bullet hole" — the real signal is that authorities have acknowledged long-end rates have breached the red line out of control. With a 59% surge in corporate bond issuance, Iran tensions pushing up energy prices, and global fiscal expansion piling up as triple pressures, the trigger for YCC and QE is being primed, but before the valve opens, the market must first get worse.