HSBC said that the speech that Federal Reserve Chairman Kevin Walsh will deliver at the Jackson Hole annual meeting will provide an important opportunity to stop the continued sell-off of US long-term treasury bonds. “If the Federal Reserve can more clearly explain its response function to inflation, it will help reduce term premiums due to uncertainty,” HSBC's US interest rate strategist Dhiraj Narula wrote in a report. Narula said that the treasury bond repurchase operation can adjust the maturity structure distribution of outstanding US Treasury bonds, but it cannot fundamentally eliminate the financial pressure and financing needs faced by the US. “We believe that Walsh's speech at Jackson Hole is the clearest opportunity recently to contain the selling pressure on long-term US debt for a relatively long time.”

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