Goldman Sachs Group said that although US long-term treasury bonds have recently been sold off, judging from macroeconomic fundamentals and comparison with similar assets, their valuation “is not clearly incorrect.” Strategist Friedrich Schaper wrote in the research report that the bond repurchase operation recently announced by the US Treasury Department sends a signal that the policy side is more willing to use unconventional tools to support long-term yields. “However, just like our previous views on the overall pattern of Japanese treasury bonds and the recent intervention in yen, if the macroeconomic drivers behind it cannot be changed, the effects of the policy may be relatively limited other than the short-term impact brought about by the announcement.”

Goldman Sachs Group said that although US long-term treasury bonds have recently been sold off, judging from macroeconomic fundamentals and comparison with similar assets, their valuation “is not clearly incorrect.” Strategist Friedrich Schaper wrote in the research report that the bond repurchase operation recently announced by the US Treasury Department sends a signal that the policy side is more willing to use unconventional tools to support long-term yields. “However, just like our previous views on the overall pattern of Japanese treasury bonds and the recent intervention in yen, if the macroeconomic drivers behind it cannot be changed, the effects of the policy may be relatively limited other than the short-term impact brought about by the announcement.”