Donald Trump suggested military intervention to influence the bond market, creating shock across financial markets. The U.S. Treasury, led by Scott Bessent, has already doubled its long-term bond buyback program to 4 billion dollars per operation, yet failed to durably lower yields. The 30-year yield, temporarily dropped to 5.19-5.24%, has resumed its upward trajectory as the market demands higher risk premiums for lending to an increasingly indebted government. U.S. federal debt now exceeds 40 trillion dollars, with interest costs surpassing the defense budget. Faced with thousands of anonymous buyers setting bond prices daily, neither buybacks nor martial threats appear capable of reversing the trend.
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