Bessent dared the bond market to ‘bet against’ him. It did — and it appears to be winning.
· Business · NBC News
Treasury Secretary Scott Bessent is struggling to influence the U.S. bond market after his efforts to lower longer-term interest rates backfired. Bessent promised to at least double government repurchases of federal debt to stimulate bond demand and lower borrowing costs as national debt crossed the $40 trillion mark. In tandem with actions to support the Japanese yen, the Treasury Department aimed to halt a sharp sell-off in U.S. Treasurys. However, bond traders took the opposite side of the administration's trade, pushing 10-year yields to 4.95% by the end of Thursday. This rate marks the highest level since November 2023 and represents a roughly 0.30-point jump since Bessent announced the buyback strategy in August.
Why it matters
Rising U.S. Treasury yields increase the government's borrowing costs on $30 trillion of federal debt and signal that the Trump administration is running out of tools to control broader financial markets.
Read the original report — NBC News
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