🚨 THE US IS NOW TRYING EVERYTHING TO BRING THE 30 YEAR TREASURY YIELD BELOW 5%, AT ANY COST.
On August 19, Treasury announced it will at least double buybacks of longer dated debt, raising the maximum from $2 billion to $4 billion per operation, starting September 9 through November 4.
This came two weeks after the normal quarterly refunding schedule was already set, an unusual move outside the normal predictable calendar Treasury has followed for years.
Total US public debt crossed $40 trillion the same day.
The relief lasted less than 2 days. By Thursday, 10 and 30 year yields had erased almost the entire move and traded higher than before the announcement, showing the first attempt was not enough to change the market's mind.
Bessent then went on CNBC and said $4 billion was not a hard cap, and buybacks "could be more than $4 billion per issue."
He also said Treasury is examining fiscal consolidation on both the revenue and cost side, with Trump directing him and OMB Director Russ Vought on the initiative, a sign the pressure is now reaching spending policy, not just debt operations.
Today, sources say Bessent could tap the Treasury General Account, built up to roughly $950 billion, to help fund these buybacks directly.
Using cash reserves instead of only repurchase operations would be a new form of intervention, one Treasury has not needed before.
Treasury has now escalated its response three times in one week after the first attempt failed within a day.
That is the level of effort going into keeping the 30 year below 5%.
The Trump administration's further weaponization of the U.S. dollar to advance its Iran policy will only hasten the speed with which the world de-dollarizes. This transition couldn't happen at a worse time, as the last thing we need now is more Treasuries to buy back or monetize.
ABD 🇺🇸 Hazine Bakanı Bessent
Saçmalamakta Trump ile yarışmaya başladı
Muhabir: İran’a yönelik ekonomik D-Günü yaptırımlarını neden hemen uygulamıyorsunuz?
Bessent: “Neden küresel finans sistemini havaya uçurmak isteyeyim ki?”
🤦🏻♂️
Aziz İhsan Aktaş Suç Örgütü davasında kararları okuyorum:
O kadar rüşvet alma suçunda ceza verilirken bir tane bile rüşvet verme suçu yok....
Müthiş...
2 dakika boyunca çırpınarak can veren bahtsız gencin vebali; 21 suç kaydı olan böyle acımasız ve psikopat kişilikli birini cezasını yeterince çektirmeden ortalığa salanların boynunadır.
Bessent’s bond-market battle “is starting to look like his boss’s war in Iran... a tangled set of objectives, an underestimated opponent and an implausible path to victory. And like the conflict in the Middle East, we are all going to suffer," per FT
Bir tarafta yüksek faizler nedeniyle giderek yavaşlayan büyüme diğer tarafta bozulmaya devam eden beklentiler. Bu ortamda faiz indirimi bakalım neye hizmet edecek?
https://t.co/fteryK1uPm
“So you announced a $4B buyback and US Treasuries started selling off”
“Yes, Dave”
“And now you are announcing a $1 Trillion buyback and you're $40 trillion in debt”
“That's right, Dave”
Bessent said the reason Trump is only threatening secondary economic sanctions and not actually imposing them now is that he does not want to "blow up the global financial system." Since the U.S. is the primary beneficiary of that system, no one will take this threat seriously.
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