Treasury Hasn't Done Enough to Lower Yields, iCapital's Suzuki Says

• Treasury's bond buybacks ($64 billion/year) are insignificant compared to past QE ($120 billion/month) and are largely symbolic.
• Drawing down the Treasury General Account (TGA) now could reduce buffer for future debt ceiling issues, potentially increasing term premiums.
• Predicts a 'higher for longer' yield environment due to bond supply and warns that sustained high oil prices could force the Fed to resume rate hikes.

Dan Suzuki of iCapital criticizes the Treasury's recent bond buyback and cash-use measures as 'miniscule' and 'symbolic,' insufficient to lower long-term yields. He anticipates a 'higher for longer' yield environment due to significant debt supply and warns of potential future Fed rate hikes if oil prices remain elevated, leading to renewed inflation.