Bessent emerges as most interventionist Treasury chief in decades
This digest was compiled by AI from multiple sources — links to the originals are below.
Scott Bessent has used a series of unexpected maneuvers this year to become the most interventionist US Treasury secretary in financial markets in decades. On Wednesday, the Treasury said it would at least double planned buybacks of 10- to 30-year debt, after earlier this month opening the door to cuts in longer-dated issuance. The steps follow first US yen purchases since the 1990s on July 31 and rate checks deployed earlier this year.
Key Facts
- The US Treasury said Wednesday it would at least double planned buybacks of outstanding 10- to 30-year debt, two weeks after releasing its initial buyback schedule.
- US authorities bought yen on July 31 for the first time in three decades, an action overseen by Treasury Secretary Scott Bessent.
- Bessent deployed yen rate checks early this year, a move that surprised a former Japanese official.
- Former US Treasury official Mark Sobel called Bessent 'activist, absolutely' and said Bessent and the administration are concerned about rising long-term yields.
- Ten-year Treasury yields have risen above their level before President Donald Trump returned to office, keeping mortgage rates elevated before the November congressional election.
Treasury Debt Buybacks
The Treasury announced on Wednesday that it would at least double its planned purchases of outstanding 10-year to 30-year debt. The announcement came two weeks after the department released its schedule for buying back older Treasury securities. Earlier this month, the Treasury opened the door to potential cuts in issuance of longer-dated debt.
Yen Market Measures
On July 31, US authorities made their first purchases of yen in three decades, an action overseen by Treasury Secretary Scott Bessent. The purchases were seen as reducing the need for Japan to sell down its Treasuries stockpile to fund its own yen buying. Early this year, Bessent deployed so-called rate checks — calls by authorities to banks for quotes on the yen — surprising even a former Japanese official.
Yields and Political Pressure
Ten-year Treasury yields rose above where they were before President Donald Trump returned to office, after an orderly bond selloff that built for months. The rise in Treasury yields has been driven by concerns about inflation, Federal Reserve policymaking, and outsize fiscal deficits. Former Treasury official Mark Sobel said of Bessent, 'He's activist, absolutely,' and that it harkens back to his hedge-fund background. Sobel added that Bessent and the administration are concerned about the rise in long-term yields. The Treasury has long hewed to a 'regular and predictable' principle in debt issuance, a concept Bessent endorsed in a November keynote speech.
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Bessent emerges as most interventionist Treasury chief in decades
