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Scott Bessent Challenges Currency Traders and Bond Market as Treasury Department Plans Aggressive Bond Buybacks

Treasury Secretary Scott Bessent challenged currency traders and the bond market to test his leadership as the Treasury Department prepares to announce the size of an aggressive bond-buying program. Speaking at Southern Methodist University, Scott Bessent stated, "I am the house now... And you can bet against me if you want," referring to the department's efforts to stabilize markets and support the Japanese yen. To prevent Japan, the largest foreign holder of U.S. debt, from offloading large amounts of U.S. treasuries, the Treasury Department joined Japanese officials in buying the yen. This move aims to keep a lid on Treasury yields, which have been rising globally. The administration announced that the Treasury Department would buy back a maximum of $6 billion of 10- to 20-year bonds, an increase from the $4 billion minimum previously stated. While Scott Bessent has successfully stabilized the yen, the bond market has shown more resistance. The benchmark 10-year yield hit 4.93% on Thursday, nearing a level that has been a focus for investors. Despite the AI boom driving demand for funds, the administration continues to market-stabilizing maneuvers to manage the $40 trillion national debt.

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