Via advocate.com
Trump says Bessent acted independently to support bond market
The Treasury doubled long-term bond buybacks as yields hit multiyear highs, but 30-year Treasuries quickly gave back gains
President Donald Trump said Treasury Secretary Scott Bessent acted on his own authority when the Treasury intervened in the bond market this week.
“No, not at all,” Trump told reporters when asked whether he directed Bessent to take action. Trump praised the Treasury secretary as capable and said he had a natural touch for bonds and interest rates.
The comments followed the Treasury’s decision to at least double buybacks of longer-dated securities.
The move was intended to help lower long-term borrowing costs, which had reached multiyear highs as investors focused on the US budget deficit, national debt, inflation and heavy borrowing by technology companies investing in artificial intelligence.
The initial effect was brief. US 30-year bonds erased their gains the following day, while Bessent said in a CNBC interview that he was prepared to expand efforts to repurchase more expensive debt. He also said the administration would announce a fiscal initiative aimed at addressing high borrowing costs.