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Bessent's Bond Gambit Backfires, Inflation Fears Rise

1 min read
Source: CNBC
Bessent's Bond Gambit Backfires, Inflation Fears Rise
Photo: CNBC
TL;DR

Treasury's plan to massively expand long-dated debt buybacks to boost market liquidity has lifted inflation expectations and pushed key yields higher: the 10-year breakeven around 2.34% (also seen on the 5-year), while 10-year and 30-year yields rose to roughly 4.73% and 5.27%. The Treasury insists the buyback isn’t aimed at tamping yields, but the move has spurred inflation worries as markets weigh policy risks ahead of Fed Chair Warsh’s Jackson Hole speech.

Topics:business#breakevens#business#debt-buyback#inflation#treasury#yields
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  1. Bessent's bond gambit aimed at calming markets is instead stirring inflation worries  CNBC
  2. Morning Bid: So much for the Bessent bid  Reuters
  3. Treasury Turns to Interventionist Tactics to Lower Interest Rates  The New York Times
  4. Anxious bond market sends troubling message to investors: There’s no easy fix for U.S. debt  MarketWatch
  5. Fed and Treasury appear at odds when it comes to the markets  Axios

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