Bessent's Bond Gambit Backfires, Inflation Fears Rise
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.