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Citadel Abandons Treasury Short Trade as Bond Buybacks Threaten Dollar

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The Story

News Summary

  • Citadel Securities reversed its bearish stance on long-dated U.S.
  • Treasuries, citing overcrowded short trades and Treasury buyback operations.
  • The firm warned that suppressing yields via debt management could weaken the U.S.
  • dollar and spur inflation unless supported by genuine fiscal discipline.
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