Controversy arises over the report on the issuance of US bonds, pointing out the contradiction between the policies of the Federal Reserve and the Treasury Department.

July 29, 2024, 10:29 AM GMT+9 (excerpt)

In the United States, despite the Federal Reserve raising interest rates last year to curb overheating in the economy, the US Treasury Department adopted a policy of slowing down the pace of issuing long-term government bonds to stimulate the economy, creating controversy in the bond market.
The report was compiled by investment firm Hudson Bay Capital Management and written by renowned American economist Nouriel Roubini, known for predicting the Lehman crisis, and Steven Mnuchin, who served as the economic policy advisor for the Treasury Department during the Trump administration.
According to the report, the Ministry of Finance announced in November last year that it would slow down the pace of expanding the scale of long-term bond auctions, resulting in a decrease in the yield of 10-year US Treasury bonds. However, this had an equivalent economic stimulus effect as reducing the policy interest rate by 1 percentage point.