Macroeconomic forecasting consultancy TS Lombard believes that if the U.S. Treasury significantly increases short-term debt issuance while simultaneously repurchasing long-term debt, it can indeed temporarily lower long-term yields and compress the spread between 30-year and 10-year rates, but this effect is more short-term in nature. Currently, Treasury Secretary Janet Yellen is pushing for long-term repurchases at a frequency approaching three times a month, with individual repurchase amounts having doubled to $4 billion, which remains relatively small compared to the entire U.S. Treasury market. Even if similar operations to Operation Twist (where the central bank or Treasury sells short-term debt and buys long-term debt) are further implemented, the effects may quickly diminish. Looking back at the Operation Twist from 2011-2012, long-term yields and the curve did initially decline significantly after the policy was introduced, but a few months later, fundamentals regained dominance, and the impact of the second round of operations was weaker. Overall, while the Treasury has tools and can create temporary supply-demand changes, it cannot fundamentally alter long-term term premiums; global capital flows and macro fundamentals will ultimately re-establish equilibrium. If investors believe that long-term bonds do not adequately compensate for inflation risks, or if the value of bonds as a hedge against stocks declines, the demand generated by Treasury repurchases will ultimately be offset by reduced allocations from private investors.