State Street Investment Management said that although the government can influence market pricing for a period of time, it is difficult to maintain a price level that deviates from fundamentals for a long time. Marciko Lu, a senior fixed income strategist, said, “This expansion of the scale of US Treasury bond repurchases further sends a signal. Policymakers' tolerance for higher long-term yields is limited, but this move hardly addresses the root cause of the problem: the continuing fiscal deficit in the context of inflation still above target levels.” “In some ways, this is reminiscent of a shorting ban. Such measures can slightly affect market behavior, but they hardly change the fundamental operating trend.”

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