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US President Trump: (Regarding Iran) We have complete control over the entire region.
2026-08-22
US President Trump: (Regarding Iran) We have complete control over the entire region.
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2026-08-21
Goldman Sachs MarketStrats believes that the U.S. Treasury's expansion of long-term Treasury repurchase agreements can indeed alleviate long-term pressure in the short term. Referring to the Operation Twist in 1961 and the maturity extension program
Goldman Sachs MarketStrats believes that the U.S. Treasury's expansion of long-term Treasury repurchase agreements can indeed alleviate long-term pressure in the short term. Referring to the Operation Twist in 1961 and the maturity extension program in 2011, historically, policy tools have led to a 10-20 basis point decline in long-term interest rates. Goldman Sachs judges that, this round, through repurchase agreements, adjustments to issuance maturities, and balance sheet management, a 20-40 basis point decline in long-term yields is also possible. However, Goldman Sachs remains cautious about the long-term effects. The current rise in long-term interest rates is driven not only by technical supply-demand mismatches, but also by persistent fiscal deficits, inflation uncertainty, and a rise in the equilibrium real interest rate. The report also emphasizes that AI capital expenditures, data center construction, power infrastructure, and re-industrialization are also continuously driving up capital demand across society. While Treasury repurchase agreements can alleviate the short-term supply of duration that the market needs to absorb, they are unlikely to change the overall trend of rising capital costs and a rising long-term interest rate.
2026-08-21
Goldman Sachs believes that the Treasury's expansion of long-term bond repurchase agreements will, in the short term, create two-way risks for the already crowded long-term bond short positions and steepening yield curve trading. Previously, many in
Goldman Sachs believes that the Treasury's expansion of long-term bond repurchase agreements will, in the short term, create two-way risks for the already crowded long-term bond short positions and steepening yield curve trading. Previously, many investors were accustomed to expressing their bearish view on duration by shorting long-duration bonds and betting on a continued steepening of the yield curve; with this policy signal, the previously near-one-sided trading is now facing forced adjustments. Charts show that leveraged funds' short positions in US Treasury futures have accumulated significantly since 2022, covering multiple maturities including 2-year, 5-year, 10-year, and long-term US Treasuries. Although these short positions will have declined from their peak by August 2026, their overall size remains significantly higher than the normal levels of previous years. If policymakers continue to signal a willingness to manage long-term pressures, short-term volatility in the long-term bond market may stem more from position rearrangements than from fundamental changes.
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