Goldman Sachs Group said that as far as reducing bond yields is concerned, no matter how hard the US Treasury is trying to curb rising borrowing costs, it is still not as effective as reducing inflation. Goldman Sachs strategist Friedrich Schaper wrote in the report that the Treasury Department's plan to expand bond buybacks may have “relatively short term” effects without turning to address fundamental US macro drivers. Long-term treasury yields soared this week as investors called for higher returns on loans to increasingly debt-burdened governments. Inflation concerns and a wave of corporate borrowing are also competing for capital, driving 30-year yields to their highest level since 2007.

Goldman Sachs Group said that as far as reducing bond yields is concerned, no matter how hard the US Treasury is trying to curb rising borrowing costs, it is still not as effective as reducing inflation. Goldman Sachs strategist Friedrich Schaper wrote in the report that the Treasury Department's plan to expand bond buybacks may have “relatively short term” effects without turning to address fundamental US macro drivers. Long-term treasury yields soared this week as investors called for higher returns on loans to increasingly debt-burdened governments. Inflation concerns and a wave of corporate borrowing are also competing for capital, driving 30-year yields to their highest level since 2007.