Bessent Says He Knows Something The Bond Market Doesn’t

Treasury Secretary Scott Bessent claimed to possess undisclosed asymmetric information about the U.S. 30-year bond market, which he believes is not shared by other investors. In an interview with CNBC, Bessent defended the Treasury's decision to increase buyback operations, stating that the recent sell-off in long-dated Treasuries is due to a market misreading of fundamentals.

However, the yield on the 30-year bond fell from 5.19% to 5.23% after Bessent's comments, contradicting his claim that the selloff was temporary. Bessent suggested that the market might be ahead of itself and that the liquidity in the 30-year bond market is poor, implying that he has information others do not.