Wall Street investors are closely watching new investment strategies, from carry trade and debasement trade to Treasury twist, amid uncertainty over the policies of Federal Reserve Chair Kevin Warsh and U.S. Treasury Secretary Scott Bessent, including intervention in the yen and long-term bond buybacks. The 30-year U.S. Treasury yield has surged to its highest level in nearly two decades, while the carry trade has posted positive returns for seven consecutive quarters, the longest streak since 2008. The debasement trade has regained attention amid concerns over U.S. public debt exceeding $40 trillion. Meanwhile, some investors view Bessent's bond buyback measures as a form of financial repression, or what is called a Treasury twist, similar to the Fed's Operation Twist. There is also debate over the 'Sell America' strategy, even though recent data shows foreign investors still hold U.S. bonds at record highs.
30-year Treasury yield surged to highest in nearly two decades, indicating bond price fall.
