Wall Street: El-Erian: „Was im US-Anleihemarkt passiert, bleibt nicht in den USA“

In recent weeks, the author Frankfurter observed multiple instances of the US Treasury Department intervening in the markets. This raises the question of whether a new power struggle has emerged, with investors clashing against the US government. It remains to be seen if this unfolds. However, it aligns with the broader picture of the Trump administration's increasing willingness to intervene, not only in the bond market but also in trade policy and through direct company investments.

Geo-economics, the use of economic tools to achieve political and strategic objectives, is becoming increasingly significant.

The Trump administration's interventions had one clear objective: to address high living costs, especially as the country prepares for November's congressional elections. Affordable housing is a key focus, and mortgage rates have gained prominence. The interventions in the yen market and the significant increase in Treasury bond purchases by the Treasury Department aimed to lower mortgage rates. Yet, the effects of these actions have dwindled quickly, both for the yen and the longer-term US Treasury bonds.

The author is considering four potential options for the US government. First, they could increase their level of intervention. If this path is chosen, the next step might involve a kind of pact with the US Federal Reserve or a pursuit of the Japanese model, seeking control over the yield curve.