Odd Lots · Thursday, September 3, 2026
Daryl Duffy, a finance professor at Stanford, suggests that Treasury Secretary Scott Besson's expansion of the Treasury's buyback program, officially cited for liquidity concerns, is a signal that the Treasury believes yields are too high. While the market initially reacted, it quickly reversed course, highlighting the limited power of the Treasury against market forces.
“From his remarks, he seemed to think that yields were too high, irrespective of liquidity concerns, and that, in his view, market participants should have understood.”
“That a lower yield for the U.S. Treasury securities would be appropriate.”
“He said that he was signaling, he used the word signal, signaling to the market his belief that Treasury yields were too high.”