Trump says he did not direct Bessent to intervene in bond market
President Donald Trump clarified that he had not influenced Treasury Secretary Scott Bessent's decisions in the market. Bessent made choices independently, guided by his grasp of existing economic conditions. In a surprising announcement, the government revealed plans to buy back double the amount of bonds initially anticipated. This unexpected action led to a significant drop in bond yields,…
US President Donald Trump stated that he did not direct Treasury Secretary Scott Bessent to intervene in the bond market. According to The Economic Times, Bessent made his decisions independently, based on his understanding of the economic situation.
The government had announced plans to buy back double the amount of bonds initially anticipated, leading to a significant drop in bond yields. This move was intended to tame US borrowing costs, but its impact was short-lived, with long-term yields rebounding.
The intervention had broader market implications, with the dollar weakening and gold and Bitcoin rallying, according to The Business Times. This was seen as a "debasement trade" fueled by swelling US deficits and concerns over US economic policy. Some market observers, including Charlie McElligott of Nomura and Ray Dalio, interpreted the market response as a sign of pressure on the market, with some recommending that investors cut bond exposure and hold gold instead.
Brief written by urgent.news from The Economic Times - Top News, The Business Times - Companies & Markets — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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