MarketPR
The Treasury Department's plan to buy up to $6 billion in Treasury bonds is putting government debt markets in focus, with Wall Street analysts skeptical that purchases at this scale can curb yields or reduce U.S.
borrowing costs in any lasting way. The program rests on a thesis the analyst community is not yet ready to endorse. The skepticism runs to the core of what the Treasury is trying to accomplish.
Bond purchases by a government entity typically aim to lift prices and pull yields lower, which reduces what the country pays to borrow.
Wall Street analysts are questioning whether $6 billion is large enough relative to the overall Treasury market to move that equation.
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