The government has fully lost control of the long-term Treasury yield - this is their attempt to bring it back under control.
I expect to see the president fire the Fed, nationalise it and make the rates negative, collapsing the economy.
I expect to see the president fire the Fed, nationalise it and make the rates negative, collapsing the economy.
The problem is Bessent trying to control something that he has never had any control over, by jawboning the market and doing silly things like trying to intervene. Bessent is the Treasury secretary. Treasury does not, and never has, controlled the yield curve. Whatever games he plays buy buying and selling bonds has only a short term psychological effect on the market, and soon people brush it off.
The Fed controls the yield curve, not Treasury.
Bessent is a hedge fund guy that is really not well suited to the role he is playing. Now, they want to put Bessent in charge of economic sanctions against Iran, when we shouldn't even have any sanctions against Iran. The US is sanctioning the world's top oil producers, and then complaining about oil shortages.