Bessent hints Treasury knows something markets don't on yen and bonds
MacroDigital Finance
Treasury Secretary Scott Bessent hinted the Treasury may have asymmetric information behind its recent yen purchase and expanded long-dated bond buybacks. Bessent said on CNBC that people have bad information while he has asymmetric information, asking why the Treasury would join Japan's intervention and pursue a Treasury twist if it did not know something the market does not. Analysts remain skeptical, with UBS's Paul Donovan calling the yen's drift back to fair value hardly surprising and BNP Paribas warning the buyback measures will struggle to offset declining Fed credibility or rising rate expectations. Bessent said further bond action will hinge on market reaction and that the Treasury is trying to keep the market in equilibrium during a thin August period.
