U.S. Treasury Secretary Scott Bessent is in an open confrontation with the bond market to lower U.S. borrowing costs. The 30-year Treasury yield has hit a record level, approaching 5.27%, its highest in nearly two decades. To try to reverse this trend, the Treasury announced it would double its purchases of long-term bonds to a minimum of $4 billion per operation starting September 9. Market participants remain skeptical due to an inflation rate at 3.7%, well above the Fed’s 2% target, and geopolitical uncertainties linked to the Iran conflict. Federal Reserve Chair Kevin Warsh, whose philosophical approach differs from Bessent’s, refuses any perception of coordination with fiscal interventions.
Source: Read the original article
