According to CNBC on Monday, Citadel Securities said that the US Treasury's attempt to curb long-term borrowing costs by repurchasing treasury bond is financial repression, which may weaken the US dollar and push up inflation. US Treasury Secretary Besant may use the TGA of the general financial account to provide funds for the repurchase of treasury bond. Castle Securities believes that this intervention will shift pressure to the foreign exchange market, as a decrease in yields will reduce the attractiveness of the US dollar and push up import commodity prices. Shah pointed out that suppressing long-term yields cannot eliminate the economic factors that drive up yields, and the message conveyed by the bond market is that fiscal or monetary policies should be tightened.
