Bessent’s bond manoeuvres giving global debasement trade new life
[LONDON] US Treasury secretary Scott Bessent’s bid to tame US borrowing costs knocked down long-term yields for barely a day. The more...
US Treasury Secretary Scott Bessent's efforts to lower US borrowing costs inadvertently strengthened a debasement trade, as long-term yields dropped briefly before weakening dollar and rising gold and Bitcoin prices. The divergence highlighted a deeper problem - Washington's desire for cheaper money, despite inflation constraints and Federal Reserve concerns.
Global competition for capital intensifies, as governments and companies vie for resources, including large-scale borrowing and investments in artificial intelligence. Bessent's intervention exposed Washington's limits in managing these dynamics. Some experts saw the gold-up, dollar-down move as a "pressure-release valve" for stabilizing long-term rates. The debate over the future of the US economy and financial markets continues.
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