Marks Warns Treasury Bond Buybacks Ignore Root Causes of Rising US Rates
Oaktree Capital founder Howard Marks argues that recent U.S. Treasury efforts to suppress long-term interest rates through bond buybacks are cosmetic and fail to address underlying fiscal imbalances. Marks contends that rising yields reflect fundamental issues, including high inflation, massive deficits, and increased capital demand from AI infrastructure. He advises investors not to sell U.S. stocks in response to these fiscal concerns, noting that alternative assets carry their own risks. While the Treasury has expanded buyback operations, market reactions have been muted, with yields remaining elevated despite intervention.
