Trump’s ‘top bond salesman’ is getting a reality check
US Treasury Secretary Scott Bessent is facing market resistance as bond yields rise despite his efforts to increase liquidity through government bond buybacks. Investors remain focused on inflation and geopolitical tensions rather than the administration's intervention strategies.
Why it matters
The failure of these buybacks to lower yields suggests that market fundamentals and inflation concerns are currently outweighing government policy interventions.
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Share A A A Wall Street brought “America’s top bond salesman” down a peg on Wednesday, reminding Donald Trump’s Treasury Secretary Scott Bessent that not even the US government can fight the bond market.
Bessent, who has claimed that title, last month announced plans for the US government to buy back $US2 billion ($2.8 billion) of longer-dated bonds. He subsequently doubled the target to $US4 billion and then, on Wednesday, raised the buyback, which is planned to happen on Thursday US time, to “up to $US6 billion”.
Scott Bessent at the Republican Midterm Convention in Dallas on Wednesday. Bloomberg If the increase was supposed to impress the market and depress bond yields, it failed.
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