Treasury’s Long-Bond Gambit Risks a Term-Premium Backfire

‼️ JPMorgan warns that the U.S. Treasury’s surprise effort to suppress long-end borrowing costs could undermine market credibility—ultimately lifting term premium and yields.

Citigroup takes the opposite trade: buy 20-year Treasuries. With inflation cooling, Citi sees policymakers leaning against long-end yields and scope for a meaningful bond rally in the months ahead.

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