bessenet

Bessenet's expansion of long-term bond repurchases has failed to effectively suppress U.S. Treasury yields, instead giving rise to "currency devaluation trades" in gold and Bitcoin. Market focus has shifted to Federal Reserve Chairman Waller's speech at Jackson Hole—if he cannot provide clear signals regarding the inflation path, the sell-off of long-term U.S. Treasuries may intensify. A 5% yield on the 30-year bond is a key threshold, and Waller's statements will be the most important variable this week.

Bessent stated that the Treasury has a powerful toolbox and hinted that the scale of a one-time long-term bond repurchase could exceed the announced $4 billion. He emphasized that long-term bond yields do not reflect the fundamentals, particularly noting the lack of liquidity in 30-year U.S. Treasuries, and announced that a new fiscal consolidation plan will be unveiled later this week or early next week. Meanwhile, Bessent mentioned that a press conference will be held next Monday to elaborate on the action plan regarding Iran, stating that the U.S. will impose the "harshest" sanctions in history, and if maximum economic pressure is applied, it is unlikely that large-scale military action will need to be restarted.