Economist says Treasury's market interventions are a subtle strategy to lower borrowing costs

The U.S. Treasury has stepped up purchases of long-term bonds and coordinated with Japan to support the yen without selling Treasuries, moves that Deutsche Bank's FX chief says constitute a soft form of financial repression aimed at containing long-term yields. He argues that if bond prices are not allowed to adjust, the dollar will bear the burden through depreciation. The interventions come as U.S. debt surpasses $40 trillion.