US Treasury Secretary Scott Bessent is taking steps that Wall Street sees as aimed at preventing long-term bond yields from spiking further. Over the past week, he staged the first US currency intervention to support the yen since 1998, which could reduce Japan's need to sell Treasuries, and pointed to a Fed facility Tokyo could use. The Treasury also unexpectedly tweaked its quarterly refunding guidance, opening the door to potential cuts in long-bond sales. Bessent has publicly defended Fed Chairman Kevin Warsh's communication strategy after his comments triggered a bond selloff. Analysts say these moves signal the Treasury is aware of the rate-market move and willing to use available tools, though larger forces like persistent inflation and high deficits may limit the impact.
Bank of Montreal
JPMorgan Chase & CoTreasury signals potential cuts in long-bond sales and currency intervention to support yen, aiming to lower yields.
