US Treasury bond buyback program may exceed $4bn, analyst says

Ramzi Abu Abdullah, a market analyst at Fyston Financial Consultancy, expects the size of the US Treasury bond buyback program to exceed $4 billion, noting that ongoing uncertainty over inflation, debt, and energy prices in the United States will drive bond yields higher.

Speaking to Al Ekhbariya channel, Abu Abdullah said markets do not anticipate an interest rate hike by the Federal Reserve, explaining that this will lead to a continued widening of the yield gap on Treasury bonds.

The market analyst pointed out that developments related to inflation, debt, and energy prices in the US are key sources of uncertainty, which will be reflected in Treasury bond yields.

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He added that as long as markets continue to rule out a Fed rate hike, the yield gap on Treasury bonds will likely keep widening.