US Treasury Secretary Bessent this year has taken an unusually interventionist
stance to curb rising US borrowing costs, including a move this week to "at
least double" planned buybacks of 10-yr and 30-yr Treasuries. Treasury had
earlier signaled it might reduce long-term debt issuance; on July 31 Bessent led
the US government’s first yen purchase in 30 years. Former Treasury official
Mark Sobel called Bessent "absolutely an aggressive interventionist," saying his
hedge-fund background is evident and senior officials are clearly worried about
rising long-term yields. Rising 10-yr yields — driven by inflation, Fed policy
and fiscal deficits — have pushed mortgage rates higher and weighed on growth;
analysts say Bessent appears to be attempting yield-curve intervention to
stabilize markets but warn it is unlikely to succeed long-term without
addressing high debt and deficits.
