Operation Twist can only succeed temporarily if accompanied by supportive monetary policy that controls money supply growth and inflation expectations.
Too little corroboration in the last 3 days to call a trend (1 article). Watching for it to gain traction.
Sources contend that Treasury curve-flattening operations can achieve only temporary success unless the Federal Reserve simultaneously implements monetary policy that constrains money supply growth and anchors inflation expectations.
The effectiveness of Treasury operations depends critically on whether the central bank's monetary stance is aligned with fiscal debt management; misalignment between these policies creates a structural headwind that can render technical interventions ineffective over time.
"Scott Bessent's version of Operation Twist can only succeed if monetary growth is supportive of his action... For Bessent to reach the promised land of lower long-term rates, the Fed must tighten monetary policy and slow the rate of growth in the money supply."