Long-Term Treasury Yields Surge, Wipe Out Effect of Bessent’s Hocus-Pocus Treasury Buybacks in 2 Days. Bond Market Not to Be Played With
If bond buyers lose confidence, they’ll demand even higher yields. Bessent better watch out with his games.
Source: Wolf Street
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DW NOTE
Bessent launched buybacks to suppress long-end yields while Treasury issues $1.9 trillion in new debt this fiscal year. The 10-year called his bluff in 48 hours. You cannot run 6%-of-GDP deficits, fund two proxy wars, and expect bond vigilantes to sit quietly because you bought back $10 billion in off-the-run paper.