Bond markets may now test Treasury's willingness to intervene

Markets have a habit of testing policymakers once a new intervention threshold becomes visible.
Long-term Treasury yields could now become the next battleground.
If yields climb again, investors will watch whether Treasury expands its efforts to contain borrowing costs.
But every additional intervention could strengthen concerns about financial repression and put more pressure on $DXY.
The key question is whether policymakers can stabilize long-term yields without turning the Dollar into the release valve.