If the government's policy objective is to extend the duration of federal debt liabilities (to lock in borrowing costs), then having Treasury buy back short-duration bonds and reissue long-duration bonds is the best approach—but if this is the objective, it should be stated explicitly rather than hidden behind passive flow mechanics.

normativepending

Speaker

Mike Green

Evidence Quote

what do you think the policy objective is. Is the policy objective to extend the duration of the liability portfolio for the federal government? If that's the policy objective, then I get it.

Source

The Trillion Dollar Trap | Mike Green on Passive Investing's Fatal Design FlawExcess Returns
Created: 8/11/2026, 5:27:10 AM

My Notes

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