Operation "Treasury Twist" — Can Washington Stop Yields From Rising? - 09/09/26

The bond market is sending Washington a message—and the Treasury is fighting back.

Long-term Treasury yields have been climbing sharply, pushing borrowing costs higher and putting pressure on everything from mortgages and corporate debt to stock-market valuations.

Now the U.S. Treasury is stepping in.

On today's TraderMerlin, we'll look at what I'm calling Operation "Treasury Twist"—the Treasury's decision to dramatically increase its purchases of longer-dated government bonds in an effort to improve liquidity and take some pressure off the long end of the yield curve.

The Treasury just announced it will buy up to $6 BILLION of 10-to-20-year bonds, triple the size of its previous long-term operation.

But there's one little problem...

So far, the bond market doesn't seem impressed.

The 10-year Treasury yield actually pushed toward 4.85%, while the 30-year remains above 5.2%.

So we'll discuss:

Treasury Buybacks – What exactly is the government doing? 10 & 30-Year Yields – Why have long-term rates been surging? Is It Working? – Why yields moved HIGHER after today's announcement Stocks – Why rising bond yields can pressure expensive growth and technology stocks Mortgages & Consumers – How the bond market filters directly into borrowing costs The Fed – How inflation, oil and interest rates complicate the picture And we'll also turn our attention to Apple! 🍎

Apple just unveiled its latest lineup, including the new iPhone 18 Pro and Pro Max—along with something much more interesting: Apple's first foldable iPhone, the iPhone Duo.

We'll look at the new products, Apple's growing AI push and, most importantly for traders: