Tom Lee commented on a report that the US Treasury could use nearly $1 trillion to support Treasury buybacks, arguing that such a move would be positive for long-duration assets. He said the assets that stand to benefit include stocks, cryptocurrencies, gold and real estate. In Lee’s view, large-scale buybacks of long-dated Treasuries by the Treasury would push long-term interest rates lower, which would make duration-sensitive assets look more attractive on a valuation basis. He added that the development should be seen as a marginal improvement in liquidity conditions. The remarks were reported by BlockBeats on Aug. 24.
BlockBeats reported on Aug. 24 that Tom Lee commented on the possibility of the US Treasury deploying nearly $1 trillion to support Treasury buybacks.
Lee said the move would be positive for long-duration assets, including stocks, cryptocurrencies, gold and real estate.
He said large-scale buybacks of long-dated US Treasuries would push long-term interest rates lower, increasing the valuation appeal of duration assets. Lee said this should be viewed as a marginal improvement in liquidity conditions.
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