BofA Sees Treasury Repurchase as 'Policy Panic' Warns Failure Could Spark Sell-Off in AI and Financial Stocks

US banks, including Bank of America (BofA), are closely monitoring the US Treasury's increased repurchase of long-term bonds as an attempt to lower borrowing costs, which have risen to nearly 20-year highs. Despite these efforts, financial institutions remain wary, with BofA viewing this move as a sign of 'policy panic.' They warn that any failure in executing this strategy could trigger a sell-off in both artificial intelligence and financial stocks.