Allianz Group Chief Economic Adviser Mohamed A. El-Erian warned that U.S. Treasury intervention in the bond market, including using funds from the Treasury General Account to purchase securities, is a fragile strategy that is unlikely to succeed and could erode investor confidence.

He argued the move fails to address the core issue: heavy government debt issuance driven by financing needs, especially from the technology sector, while traditional buyers such as China, Japan, and Gulf producers have become less stable sources of demand.

According to El-Erian, such intervention would only be warranted if there were market failure or an institutional breakdown, conditions he does not see as present.

He also pointed out a troubling dynamic: market pricing is increasingly forcing the Treasury to react, rather than allowing the Treasury to guide the market.