#BessentPlansToShakeBondBears Bessent Plans to Shake Bond Bears

U.S. Treasury Secretary Scott Bessent is taking a more aggressive approach to rising long-term bond yields, aiming to challenge investors betting that Treasury prices will keep falling. The strategy centers on expanding Treasury buybacks, particularly longer-dated securities, to improve market liquidity and put downward pressure on borrowing costs. The Treasury has doubled planned buybacks to as much as $4 billion per operation, while officials are considering whether the Treasury’s roughly $1 trillion General Account could support additional purchases.
The move comes after long-term yields climbed sharply, with the 10-year Treasury yield around 4.69% and the 30-year yield above 5%. Bessent has described the approach as a “Treasury twist,” rather than a traditional monetary-policy intervention. Critics argue that buybacks are too small to overcome deeper forces pushing yields higher, including large federal deficits, heavy government borrowing, inflation concerns and strong private-sector demand for capital.
The policy has divided investors. Some see it as a liquidity-support measure that could stabilize Treasury markets, while others worry it could distort price signals and weaken confidence. The debate matters for stocks, the dollar, gold and cryptocurrencies because Treasury yields influence financial conditions. Bitcoin has recently benefited from a softer dollar and expectations of lower long-term yields.