Natalia Lojevsky, managing director at CIFC Asset Management, said Treasury buybacks do not retire debt and therefore cannot address the structural forces pushing yields higher. The Treasury is repurchasing bonds and financing those repurchases by issuing shorter-dated paper—maturity substitution, not deleveraging—effectively treating a supply problem as a liquidity issue. The long end of the U.S. Treasury curve faces pressure from multiple parties competing for limited long-duration bids: the T

Natalia Lojevsky, managing director at CIFC Asset Management, said Treasury buybacks do not retire debt and therefore cannot address the structural forces pushing yields higher. The Treasury is repurchasing bonds and financing those repurchases by issuing shorter-dated paper—maturity substitution, not deleveraging—effectively treating a supply problem as a liquidity issue. The long end of the U.S. Treasury curve faces pressure from multiple parties competing for limited long-duration bids: the Treasury itself, the AI-driven capex cycle, and the absence of the Fed—the market’s largest, least price-sensitive buyer. Other traditionally steady central-bank buyers, including Japan, China and Gulf-state buyers, have also reduced participation to some extent.