Bessent (and his boss) have lost all credibility on the economy

Live updates

1. 3d ago

   Bond Market Rebuffs Treasury Buyback Plan

   The bond market rebuffed the Treasury Department's six billion dollar plan to reduce borrowing costs by buying back longer-term debt, which is triple the normal level. Edgy bond investors remained unconsoled by the operation as government bonds sold off despite the intervention. Treasury Secretary Bessent dismissed concerns regarding the buyback, maintaining that Treasuries are strong. Analysts question official credibility regarding economic management as markets reject the administration's fiscal efforts.

   Why it matters

   The Treasury attempted to lower borrowing costs through a major debt repurchase operation, marking a significant increase from standard operational volumes. Government bonds traditionally serve as safe assets, making market pushback against official intervention notable. Observers and opinion writers note that failed market mechanisms damage confidence in economic leadership.

   What is confirmed

   • The Treasury Department planned to buy back up to six billion dollars in longer-term debt, tripling the normal level.
   • The bond market and edgy investors rebuffed the Treasury buyback plan, and bonds sold off despite the operation.
   • Treasury Secretary Bessent dismissed concerns regarding the buyback and stated that Treasuries are strong.

   Still unconfirmed

   • Bessent and his boss have lost all credibility on the economy.

   What to watch next

   • Further reactions from bond market investors to upcoming Treasury auctions
   • Subsequent Treasury Department debt management announcements
   Sources used for this update (7)

   1. The New York Times — Bond Market Rebuffs Treasury’s $6 Billion Plan to Reduce Borrowing Costs
   2. The Washington Post — Opinion | Government bonds are safe assets, right?
   3. Reuters — Edgy bond investors unconsoled by Bessent's big buyback
   4. WSJ — Bonds Sell Off Despite Buyback Operation
   5. Bloomberg.com — Bessent Dismisses Concern on Buyback, Says Treasuries Are Strong
   6. CNBC — Treasury Department to buy back up to $6 billion in longer-term debt, triple the normal level
   7. Robert Reich | Substack — Bessent (and his boss) have lost all credibility on the economy
   confidence 95%