{"title":"Allianz\'s El-Erian: US Treasury buybacks lower long yields; watch for
YIELD CONTROL risk, costs and short-lived effects","content":"Allianz chief
economist El-Erian said long Treasury yields fell after the US Treasury expanded
bond buybacks. He noted the buyback size is small in absolute terms and relative
to net issuance, so the key market question is whether this foreshadows wider
use of YIELD CONTROL. He warned YIELD CONTROL can suppress long-end yields and
lower mortgage and other financing costs in the short term but carries side
effects and unintended consequences. Such financial-engineering effects are
typically short-lived; absent deeper policy changes, any yield compression is
unlikely to be sustained."}
