The treasury bond mess: is this the demise of the US as a safe haven?
Efforts by the U.S. Treasury under Scott Bessent to lower bond yields have fallen short, with long-term yields remaining near multi-decade highs. Sources indicate Bessent may tap nearly $1 trillion from the Treasury General Account to fund bond buybacks, while analysts examine how these high real bond yields act as a restraint on economic growth.
- Treasury Secretary Scott Bessent's recent government bond purchases failed to sustainably lower yields.
- The 30-year bond yield continues to trade near its highest level in 20 years or more.
- Scott Bessent could tap nearly $1 trillion from the Treasury General Account for bond buybacks.
- Analysts are highlighting cycle highs in real bond yields as a restraint on economic growth.
Part of the storyline: Will the Fed raise rates again?