Bezent's expansion of US bond repurchases is accused of “playing with fire,” and the US may repeat the depreciation of the Japanese currency

Comparative news: After the US announced this week that it would expand treasury bond repurchases, causing severe market shocks, investors began to compare it with Japan's policy. Measures taken by Japan to lower borrowing costs in the past have caused the yen to weaken for a long time. The US dollar is currently at a three-month low and is poised to record its worst weekly performance this month. The US Treasury unexpectedly announced in mid-week that it will double the scale of longer-term treasury bond repurchases.

Robin Brooks, a senior researcher at the Brookings Institution, said that the US government's move is the “clearest sign” so far, indicating that the US is following Japan's footsteps and moving towards depreciation of the local currency. He said the US government is “playing with fire.” US bonds rose for a while after the news was announced, but since then they have regained their gains. Gold and other precious metals were higher. Steven Barrow, head of G10 strategy at Standard Chartered Bank, said that reducing bond yields through repurchases will only put further pressure on the US dollar, but it will not solve the fundamental problem driving the rise in yield, that is, the fiscal deficit. (financemagnates)