‘I am the house now’: Bessent warns currency traders not to bet against yen
Treasury Secretary Scott Bessent has retracted his "I am the house" statement made a month ago to currency traders. In an interview with Axios, Bessent defended the Treasury's bond market record despite 10-year and 30-year Treasury yields reaching their highest levels since 2002. While he maintains that investors "win over time" regarding his bond policy, the reversal follows a period where markets ignored a $6 billion buyback and yields continued to rise, challenging his previous attempts to stabilize the yen.
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- ✓ Scott Bessent serves as the 79th United States Secretary of the Treasury.
- ✓ 10-year and 30-year Treasury yields have climbed to their highest levels since 2002.
- ✓ Bessent walked back his "I am the house" declaration during a televised interview with Axios.
What changed
Secretary Bessent has officially walked back his "I am the house" declaration in a televised interview.
Live updates
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Treasury Secretary Bessent walks back "I am the house" currency warning
Treasury Secretary Scott Bessent has retracted his "I am the house" statement made a month ago to currency traders. In an interview with Axios, Bessent defended the Treasury's bond market record despite 10-year and 30-year Treasury yields reaching their highest levels since 2002. While he maintains that investors "win over time" regarding his bond policy, the reversal follows a period where markets ignored a $6 billion buyback and yields continued to rise, challenging his previous attempts to stabilize the yen.
Why it matters
Bessent previously used the "house" metaphor to discourage bets against the Japanese yen. This effort coincided with the Bank of Japan raising its policy rate to 3.1% in September to stop the currency from depreciating.
What is confirmed
- Scott Bessent serves as the 79th United States Secretary of the Treasury.
- 10-year and 30-year Treasury yields have climbed to their highest levels since 2002.
- Bessent walked back his "I am the house" declaration during a televised interview with Axios.
Still unconfirmed
- Bessent claims that investors win over time regarding his bond policy.
What to watch next
- Movement of 10-year and 30-year Treasury yields following the retraction
- Further coordinated actions between the US Treasury and the Bank of Japan to support the yen
confidence 90%Sources used for this update (6)
- home.treasury.gov — Press Releases | U.S. Department of the Treasury
- en.wikipedia.org — Scott Bessent - Wikipedia
- finance.yahoo.com — What Bessent is now saying after bond yields didn’t stop ...
- finance.yahoo.com — Scott Bessent dismisses bond market backlash as 10-year ...
- economictimes.indiatimes.com — satsuki katayama: Latest News & Videos, Photos about satsuki ...
- theconservativetreehouse.com — Sunday Talks - Treasury Secretary Bessent: "Zelenskyy Needs ...
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US Treasury Secretary Scott Bessent Faces Market Pushback Over Yen Stance
US Treasury Secretary Scott Bessent faces mounting challenges after declaring 'I am the house' to warn currency traders against betting against the yen. Despite earlier coordinated efforts by Japanese and US officials that pushed the currency to ¥156.94 per dollar on Friday, bond markets have shrugged off a $6 billion buyback. Treasury yields continued to rise following the warning, exposing vulnerability in the official strategy. The Bank of Japan previously raised its policy rate to 3.1% in September to curb depreciation.
Why it matters
The recent market friction highlights the limits of official intervention in reversing entrenched currency trends. Japanese and US monetary authorities previously stepped in after the yen weakened, leading to a September rate hike by the Bank of Japan to a 31-year high of 3.1%. However, recent market reactions suggest that large-scale financial maneuvers are failing to deter traders from pushing yields higher.
What is confirmed
- US Treasury Secretary Scott Bessent warned currency traders not to bet against the yen by stating 'I am the house.'
- The yen reached ¥156.94 per dollar on Friday following meetings between Japanese and US officials.
- The Bank of Japan raised its policy rate to 3.1% in September.
Still unconfirmed
- Bond markets shrugged off a $6 billion buyback.
- Treasury yields continued to rise following the official warning.
What to watch next
- Further actions or statements from US Treasury Secretary Scott Bessent regarding currency intervention
- Movement in Japanese bond yields and the exchange rate past ¥156.94 per dollar
confidence 100%Sources used for this update (2)
- finance.yahoo.com — Scott Bessent went from ‘I am the house’ to ‘I can’t set the ...
- botspot.trade — ️ Bessent Said 'I Am the House.' Then Yields Kept Rising.
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Bank of Japan raises rates to 3.1% as US and Japan coordinate yen support
The Bank of Japan raised its policy rate to 3.1% in September, the highest level in 31 years, to stop the yen from depreciating and manage inflation. This move aligns with Federal Reserve actions following warnings from US Treasury Secretary Scott Bessent for traders not to bet against the currency. The yen reached ¥156.94 per dollar on Friday, marking its strongest daily performance in nearly three weeks after Japanese and US officials held meetings to address currency weakness.
Why it matters
The shortest interval between rate hikes since 1990 shows a rapid shift in Japanese monetary policy. This coordination aims to stabilize the exchange rate while the US bond market faces yields at their highest since 2002.
What is confirmed
- The Bank of Japan raised its policy rate to a 31-year high of 3.1% at its September meeting.
- The yen rose to ¥156.94 per dollar on Friday.
- Treasury Secretary Scott Bessent warned currency traders not to bet against the yen.
Still unconfirmed
- Congress can restore credibility by passing a Fiscal Commission Act with real authority.
- Treasury yields are at their highest since 2002.
What to watch next
- Further rate hike decisions from the Bank of Japan
- Official statements on joint US-Japan currency intervention
- US Treasury updates on the Fiscal Commission Act
confidence 90%Sources used for this update (4)
- english.elpais.com — Operation Save the Yen: Japan partially turns off the cheap money tap, with a little help from its ‘American friend’
- finance.yahoo.com — Bessent said ‘I am the house.’ The bond market disagreed
- www.thestar.com.my — Yen rises as Japan flags currency weakness - The Star
- askfuzz.ai — Japan's Currency Diplomat Warns Markets on Yen Intervention ...
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Yen strengthens as Japanese officials warn against weak currency
The Japanese yen rose as much as 1.2% to ¥156.94 per dollar on Friday, outperforming all of its Group-of-10 peers, after Japanese officials expressed concerns over the weak currency. US Treasury Secretary Scott Bessent warned currency traders not to bet against the yen, aiming to push the Federal Reserve and Bank of Japan to coordinate a stronger yen and weaker dollar.
Why it matters
The yen's value has been a subject of concern for Japanese officials, who have been trying to strengthen the currency. A stronger yen could help reduce the US debt burden, which has been a priority for the US Treasury. The Federal Reserve and Bank of Japan have been working together to address inflation and stabilize the currency markets.
What is confirmed
- The yen rose as much as 1.2% to ¥156.94 per dollar on Friday.
- Japanese Finance Minister Satsuki Katayama held online talks with US Treasury Secretary Scott Bessent.
- The dollar-yen exchange rate is on the verge of forming a death cross.
Still unconfirmed
- A coordinated effort between the US and Japan seeks to reduce the US debt burden.
What to watch next
- The Federal Reserve and Bank of Japan's next moves on interest rates
- The US inflation data and its impact on the dollar-yen exchange rate
- The outcome of the online talks between Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent
confidence 80%Sources used for this update (12)
- economictimes.indiatimes.com — Dow Jones| Nasdaq | US Stock Market Today | Live: Dow Jones surges 400 points despite higher Treasury yields
- www.japantimes.co.jp — Yen rises as Japanese officials say weak currency is problem
- mainichi.jp — Japan, US finance chiefs share concern over 'undervalued yen'
- finance.biggo.com — Dollar-Yen 'Death Cross' Looms as Trump Cheers a Stronger ...
- finance.yahoo.com — A ‘death cross’ is coming for the dollar. Why Trump will be ...
- economictimes.indiatimes.com — scott bessent treasury: Latest News & Videos, Photos about ...
- en.wikipedia.org — 12-hour clock - Wikipedia
- dictionary.cambridge.org — AM | English meaning - Cambridge Dictionary
- english.cool — AM、PM 的意思是？正確用法是？ – 英文庫
- www.cuemath.com — AM and PM - Meaning, Full Form of AM PM | Relation with 24-Hour...
- sparks-edu.com — Perbedaan AM dan PM: AM Pagi atau Malam? PM Siang atau Malam?
- www.am-pm.nl — AM PM Meaning Explained — Time, Clocks & Time Zones | AM-PM.nl
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Bessent Warns Yen Traders as Global Bond Sell-Off Ignites
U.S. Treasury Secretary Scott Bessent warns currency traders against betting against the yen, aiming to push the Federal Reserve and Bank of Japan to coordinate a stronger yen and weaker dollar. This coordinated effort seeks to reduce the U.S. debt burden following a period of high volatility where speculators turned net long on the yen. Meanwhile, government borrowing costs surged worldwide after central banks raised interest rates to tame inflation, while the Nasdaq 100 advanced 1.7% in Thursday trading with semiconductors surging 3.1%.
Why it matters
The push for a weaker dollar and stronger yen comes as global financial markets react to shifting monetary policies and rising interest rates. Speculative shifts toward the yen and away from carry-trade flows have amplified market volatility, altering currency positions for the first time since February. Concurrently, central bank rate hikes have reignited a bond sell-off, pushing government borrowing costs higher across international markets.
What is confirmed
- Government borrowing costs surged worldwide on Friday after a string of central banks raised interest rates to tame surging inflation.
- The Nasdaq 100 advanced 1.7% in Thursday trading, with semiconductors surging 3.1%.
Still unconfirmed
- U.S. Treasury Secretary Scott Bessent is pushing the Federal Reserve and the Bank of Japan to coordinate a stronger yen and a weaker dollar to reduce the U.S. debt burden.
What to watch next
- Decisions by the Federal Reserve and the Bank of Japan regarding coordinated currency intervention
- Further movements in global government borrowing costs and bond yields
- Speculative positioning shifts in currency markets regarding the yen and carry trades
confidence 80%Sources used for this update (2)
- finance.yahoo.com — Bond sell-off reignites as central banks raise interest rates
- seekingalpha.com — Weekly Commentary: Walked The Walk
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Bessent pressures Fed and BoJ to strengthen yen to lower U.S. debt burden
U.S. Treasury Secretary Scott Bessent is pushing the Federal Reserve and the Bank of Japan to coordinate a stronger yen and a weaker dollar. This policy shift aims to reduce the debt burden of the United States. The move follows a period of high volatility where speculators turned net long on the yen for the first time since February, causing a 6% rise in the currency and forcing investors to move carry-trade flows into the Canadian dollar and yuan.
Why it matters
Currency traders previously bet against the yen, creating carry trades that funded other assets including AI stocks. A sudden yen rally threatens to unwind these positions, creating systemic risk across global financial sectors.
What is confirmed
- Scott Bessent is the U.S. Treasury Secretary.
- Speculators held net long positions on the yen for the first time since February.
- The yen recorded a 6% rise.
Still unconfirmed
- Scott Bessent is pressuring the Federal Reserve and the Bank of Japan to steer a stronger yen and a weaker dollar to ease the U.S. debt burden.
What to watch next
- Official policy statements from the Federal Reserve regarding dollar valuation
- Bank of Japan interest rate decisions
- Data on carry-trade flow shifts toward the yuan and Canadian dollar
confidence 80%Sources used for this update (2)
- news.sbs.co.kr — Entering the 1,300-Won Range in a Flash: Where Is the Korean Won Headed After Hitting a Two-Year High?
- www.briefs.co — Hong Kong doubles down on offshore yuan bonds with new index and policy push
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Traders Flip Bullish on Yen as Bessent Faces Market Realities
U.S. Treasury Secretary Scott Bessent faces stiff resistance from currency markets after warning traders not to bet against the Japanese yen. Speculators turned net long on the yen for the first time since February, driven by Bank of Japan rate hike bets that revived fears of a carry-trade unwind impacting artificial intelligence stocks. The yen has recorded a 6% rise, forcing investors to shift carry-trade flows toward alternatives such as the yuan and Canadian dollar as volatility and shifting rates alter math across global financial sectors.
Why it matters
Last month, U.S. support for the Japanese yen was characterized as a signal of friendship. However, Bessent's aggressive rhetoric warning that he is the house now runs into larger market realities as traders ignore warnings and adjust funding alternatives. Analysts previously noted that these interventions could clash with current bull market trends and his broader goal of capping U.S. bond yields.
What is confirmed
- Speculators went net long the yen for the first time since February on BOJ rate hike bets.
- The yen recorded a 6% rise that flipped carry-trade flows.
Still unconfirmed
- Scott Bessent's future homecoming to hedge fund row is complicated by current market realities against his big talk.
What to watch next
- Further movements in the dollar-yen pair relative to the 152 threshold.
- Additional reactions from currency traders to U.S. Treasury interventions and bond yield caps.
- Evidence of whether carry-trade unwinds impact artificial intelligence stocks.
confidence 90%Sources used for this update (4)
- asiatimes.com — Bessent’s big talk runs into bigger market realities
- startupfortune.com — Traders Just Flipped Bullish on the Yen for the First Time Since February
- www.philstar.com — Don’t bet against the house
- www.briefs.co — Investors look beyond the yen as carry-trade math shifts
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Treasury Secretary Bessent Warns Currency Traders Against Shorting Yen
U.S. Treasury Secretary Scott Bessent has challenged investors to stop betting against the Japanese yen, stating, "I am the house now." This aggressive stance coincides with a U.S. Treasury announcement for a longer-dated bond repurchase program of up to $6 billion. While the dollar-yen pair has dropped below 152 amid rapid yen appreciation, some traders are ignoring the rhetoric. Analysts suggest Bessent's interventions could conflict with current bull market trends and his broader goal of capping U.S. bond yields.
Why it matters
The Treasury's actions aim to stabilize currency markets and manage government debt costs. Bessent's strategy for bond yields is facing scrutiny as market pressures persist. This conflict highlights the tension between U.S. fiscal policy and global currency volatility.
What is confirmed
- Treasury Secretary Scott Bessent told investors, "I am the house now," while warning against shorting the yen.
- The U.S. Treasury announced a longer-dated bond repurchase of up to $6 billion.
- The dollar-yen pair has fallen below 152.
Still unconfirmed
- Interventions by Bessent could be the biggest enemy of the current bull market.
What to watch next
- Further movement of the dollar-yen pair toward the 147 level.
confidence 90%Sources used for this update (8)
- Currently.com — 'I am the house now': U.S. Treasury Secretary Scott Bessent Dares Investors to Short the Yen, as the Treasury Announces a Longer-Dated Bond Repurchase Up to $6 Billion
- Bloomberg.com — Traders Brush Aside Scott Bessent’s ‘Bet Against Me’ Tough Talk
- MarketWatch — The bull market’s biggest enemy right now could be Bessent’s interventions
- Financial Times — ‘I am the house now’: Bessent warns currency traders not to bet against yen
- Financial Times — Must high bond yields crack stocks?
- www.smh.com.au — Trump’s ‘top bond salesman’ is getting a reality check
- The Washington Post — Opinion | Government bonds are safe assets, right?
- finance.biggo.com — Dollar-yen breaks below 152, with 147 in sight as Treasury Secretary Bessent makes unprecedented taunt against yen sellers
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