President Donald Trump stated he did not direct Treasury Secretary Scott Bessent to intervene in the bond market, asserting Bessent acted independently. This comes as Bessent's plan to double bond buybacks failed to cap rising yields, with the 10-year Treasury yield at 4.69% and the 30-year at its highest since 2007.
Treasury Secretary Scott Bessent's efforts to stabilize bond markets have so far failed to curb rising yields, despite a doubling of buyback operations. President Trump's denial of directing the intervention adds a layer of uncertainty to the administration's strategy for managing national debt and interest rates.
President Donald Trump stated on Friday that he did not direct Treasury Secretary Scott Bessent to intervene in the bond market this week, asserting that Bessent acted independently based on his understanding of the issues. Bessent had announced the government would double its Treasury repurchase amount to $4 billion per operation, a move intended to calm bond markets. However, by Friday, the declines in bond yields triggered by this announcement had largely unwound. The 10-year Treasury yield rebounded to 4.69%, and the 30-year yield reached 5.23%, its highest level since 2007. Analysts attribute the persistent rise in long-term Treasury yields to concerns over the U.S. government's increasing debt, inflation remaining above the Federal Reserve's 2% target, and market confusion regarding Fed policy. Bessent, a former hedge fund manager, believes current yields do not reflect underlying economic fundamentals.
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