Bessent Bond Plan ‘Won’t Work,’ Citi Economist Says

Live updates

1. 20d ago

   Citi Economist Rejects Scott Bessent's Bond Market Plan

   A Citi economist claims Scott Bessent's plan to stabilize the bond market will not work. This criticism coincides with a broader surge in global bond yields and growing skepticism from market professionals regarding the Treasury's ability to tame the market. Apollo's top economist and Stanley Druckenmiller have argued that bond yields now serve as the only remaining fiscal disciplinarian for the United States. These developments suggest a disconnect between proposed government interventions and the current trajectory of global debt markets.

   Why it matters

   Bond yields influence borrowing costs for governments and corporations. When yields surge, it often reflects market concerns over inflation or fiscal sustainability. The debate centers on whether policy tools can override market-driven yield increases.

   What is confirmed

   • Global bond yields are surging.

   Still unconfirmed

   • Market professionals are criticizing the Treasury's plan to tame the bond market.

   What to watch next

   • Official Treasury responses to the Citi economist's claims
   • Further yield movements in the iShares 20+ Year Treasury Bond ETF
   • New fiscal policy announcements from Scott Bessent
   Sources used for this update (7)

   1. CNN — Global bond yields are surging. Here’s why it matters
   2. WSJ — Opinion | Let the Bond Market Speak
   3. CNBC — Santoli: Why all the fuss about bond yields is happening now
   4. The American Prospect — Why Scott Bessent Can’t Fix the Bond Market
   5. Benzinga — Bessent Bond Plan ‘Won’t Work,’ Citi Economist Says - iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT)
   6. Haver Analytics — Putting Current Bond Yields into Historical Perspective
   7. www.businessinsider.com — Why a chorus of market pros is criticizing the Treasury's plan to tame the bond market
   confidence 70%