Treasury Buybacks Fail to Calm Bond Market

• PIMCO's Tony Crescenzi believes US 30-year bonds are in a 'fair value zone' with current yields, offering attractive compensation for long-term investors.
• Tom Keene criticizes the Treasury Secretary's bond market intervention as 'arrogant' and an encroachment on the Federal Reserve's traditional role in yield management.
• The conversation highlights concerns about potential market fragility if nominal GDP slows down, and the importance of Fed independence in maintaining market stability.
• The strength of the dollar and its implications for global markets, particularly emerging markets, are also discussed, with focus on the payment system and depth of US markets.

The discussion revolves around the US bond market, Treasury's recent debt buybacks, and the upcoming Jackson Hole meeting. Tony Crescenzi suggests that US 30-year bonds are currently in a 'fair value zone' considering inflation and neutral rates, offering value to investors. Tom Keene, however, expresses strong criticism of the Treasury Secretary's intervention, viewing it as an 'arrogance' that undermines Fed independence and could lead to market fragility.