Scott Bessent takes on bond vigilantes in $32tn Treasury market
Wall Street investors say move to buy more long-term US debt is a ‘band-aid on a bullet hole’
Source: Financial Times
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DW NOTE
Bessent is trying to fund a $2 trillion deficit in a market where the Fed is no longer the buyer of last resort and foreign central banks are net sellers. Shifting issuance toward longer maturities doesn't change the arithmetic — it just asks bondholders to lock in exposure to a government that raised the debt ceiling by $5 trillion this year while inflation runs well above target. The vigilantes aren't wrong.