Scott Bessent fails to break ‘fever’ in US bond market
Treasury Secretary Scott Bessent has frozen out a news outlet after it reported on his contradictory mortgage pledges. Media figures warn this conflict could endanger the economy. This friction follows a failed September 10 Treasury buyback where Bessent attempted to lower borrowing costs with a $6 billion operation, triple the normal volume. Despite these efforts, 10-year Treasury yields hit their highest levels since 2023 and mortgage rates climbed. Bessent has since cautioned that the bond market has taken out more governments than howitzers.
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- ✓ Scott Bessent stated that the bond market has taken out more governments than howitzers.
- ✓ Treasury Secretary Scott Bessent froze out a news outlet that reported on his contradictory mortgage pledges.
What changed
Bessent is now accused of freezing out a media outlet following reports of contradictory mortgage pledges.
Live updates
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Bessent clashes with media as bond market volatility persists
Treasury Secretary Scott Bessent has frozen out a news outlet after it reported on his contradictory mortgage pledges. Media figures warn this conflict could endanger the economy. This friction follows a failed September 10 Treasury buyback where Bessent attempted to lower borrowing costs with a $6 billion operation, triple the normal volume. Despite these efforts, 10-year Treasury yields hit their highest levels since 2023 and mortgage rates climbed. Bessent has since cautioned that the bond market has taken out more governments than howitzers.
Why it matters
The Treasury is struggling to stabilize interest rates amid a bond sell-off. High yields increase the cost of government debt and consumer loans. Bessent's relationship with the press affects market confidence in fiscal stability.
What is confirmed
- Scott Bessent stated that the bond market has taken out more governments than howitzers.
- Treasury Secretary Scott Bessent froze out a news outlet that reported on his contradictory mortgage pledges.
Still unconfirmed
- Campaign media figures warn that Bessent's reaction to fraud claims poses a real risk to the economy.
What to watch next
- Federal Reserve actions regarding Warsh this week
- Further shifts in 10-year Treasury yields
- Official Treasury response to fraud allegations
confidence 90%Sources used for this update (4)
- finance.yahoo.com — Scott Bessent warned the bond market ‘has taken down more governments than howitzers’: That theory may give the Fed’s Warsh room to breathe this week
- www.rawstory.com — Scott Bessent's furious war with financial press threatens to spiral into crisis: insiders
- crooksandliars.com — Bessent's 'Furious' Reaction To Fraud Claim Poses 'Real Risk' To Economy: Experts
- www.briefs.co — Record Diesel Prices Pinch Trucking, With Contract Floaters Helping Some Operators
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Bond Market Rejects Bessent's $6 Billion Treasury Buyback
The US bond market responded negatively to a $6 billion Treasury buyback operation launched on September 10, with 10-year Treasury yields jumping to their highest levels since 2023. Despite Scott Bessent's efforts to lower borrowing costs through a buyback triple the normal level, bonds sold off and mortgage rates increased. Bessent has dismissed these concerns, asserting that Treasuries remain strong, while critics argue that attempts to suppress interest rates could potentially trigger a recession.
Why it matters
The Treasury uses buybacks to manage debt and stabilize markets by purchasing longer-term debt. This specific operation was an attempt to reduce borrowing costs during a period of market volatility. The failure of the plan suggests investor skepticism regarding current fiscal strategies.
What is confirmed
- The US Treasury conducted a buyback operation on September 10 to purchase up to $6 billion in longer-term debt.
- The $6 billion buyback amount is triple the normal level.
- The 10-year Treasury yield rose to its highest level since 2023 following the buyback plan.
- Mortgage rates increased after the Treasury buyback announcement.
- Bonds sold off despite the buyback operation.
Still unconfirmed
- Scott Bessent's attempts to suppress interest rates could spark a recession.
- Scott Bessent claims that Treasuries are strong.
What to watch next
- Future Treasury buyback volumes and their impact on long-term yields
- Official statements from the Treasury regarding the September 10 operation results
- Changes in mortgage rates following the bond sell-off
confidence 95%Sources used for this update (12)
- Reuters — US Treasury to buy up to $6 billion in Sept 10 buyback operation
- The New York Times — Bond Market Rebuffs Treasury’s $6 Billion Plan to Reduce Borrowing Costs
- CNBC — 10-year Treasury yield jumps to highest since 2023 despite Bessent's $6 billion bond buyback plan
- The Washington Post — Opinion | Government bonds are safe assets, right?
- Axios — Bessent fails to shock and awe the bond market
- Reuters — Edgy bond investors unconsoled by Bessent's big buyback
- Mortgage News Daily — Mortgage Rates Jump After New Treasury Buyback Announcement
- WSJ — Bonds Sell Off Despite Buyback Operation
- Bloomberg.com — Bessent Dismisses Concern on Buyback, Says Treasuries Are Strong
- Financial Times — Scott Bessent fails to break ‘fever’ in US bond market
- CNBC — Treasury Department to buy back up to $6 billion in longer-term debt, triple the normal level
- nypost.com — Bessent’s attempts to suppress interest rates could spark a recession
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