Episode 1409: Wednesday - September 9, 2026
Markets Down, Treasury Buybacks, and Limits of Yield Curve Control
Markets Down, Treasury Buybacks, and Limits of Yield Curve Control
Brian Szytel reports a third straight market decline (Dow -405, S&P -0.5%, Nasdaq -0.7%) alongside falling bond prices and a 10-year yield up 5 bps to 4.84%, noting Treasury talk of increasing long-bond buybacks to $6B is too small versus ~$5.5T of long debt and was met by higher yields. He walks through a hypothetical of refinancing all long-term debt with T-bills, which could flatten the curve but would push short rates up, remove long-duration supply, and make U.S. financing resemble an emerging market, undermining the Fed and increasing fiscal sensitivity and inflation premiums. He notes T-bills are ~22% of issuance vs a ~15–20% target. He discusses Japan and Europe’s zero/negative-rate policies often producing unintended outcomes (carry trades, deleveraging, higher saving). No major data today; PPI tomorrow and CPI Friday.
00:00 Market Close Recap
00:33 Treasury Buyback Buzz
01:57 Yield Curve Control Limits
03:20 Why Borrowing Long Matters
04:13 Fed Mandate And Inflation Risk
05:16 Japan Zero Rate Lessons
06:33 Europe Negative Rate Backfire
07:18 Wrap Up And Data Ahead
Links mentioned in this episode: DividendCafe.com
Brian Szytel is the Co-CIO and Senior Managing Director of The Bahnsen Group.
View episodesGet new episodes of The Dividend Cafe automatically
