Under Bessent, key market interventions since early 2025 included: Early 2025 —
initiated FX quote inquiries with banks for yen bids to probe market views ahead
of possible intervention. June 2025 — executed a one‑off Treasury repo of
$10.0bn, the largest in Treasury history, to improve bond market liquidity and
buffer US note sell‑offs; markets read it as groundwork for larger repos. Oct.
2025 — directly bought Argentine pesos in excess of $1.0bn ahead of Oct. 26
midterm elections, stabilising the peso and reversing declines in Argentine
equities and bonds. Oct. 2025 — agreed a $20.0bn currency‑swap framework with
the Central Bank of Argentina to provide dollar liquidity. Nov. 2025 — signalled
gradual adjustments to coupon Treasury auction sizes to avoid market disruption
while emphasising auctions would remain regular and predictable; no immediate
change to sizes. July 2026 — led the first direct US purchases of yen in nearly
30 years via Goldman Sachs and MORGAN STANLEY selling euros to buy yen, sized
$5–10bn, aimed at arresting sharp yen depreciation and preventing Japanese sales
of Treasuries that could lift US yields; yen rallied from ~164 to ~157. Aug.
2026 — doubled 10–30yr Treasury repo operations from $20bn to at least $40bn per
operation from Sept. 9 to push down long‑end yields as the 30‑yr approached
5.3%; the 30‑yr yield fell about 10bps, US equity indices closed higher and the
Bloomberg Dollar Spot touched a three‑month low. Aug. 2026 — continued to signal
potential further repo expansion and considered using roughly $950bn–$1.0trn of
Treasury General Account (TGA) balances to back operations, aiming to further
restrain long‑end yields and remove funding‑source uncertainty; this prompted
modest additional declines in long‑end yields.
