U.S. Treasury Secretary Scott Bessent's Plan to Calm the Bond Market Could Have Unintended Consequences for Fed Chair Kevin Warsh
Bessent recently announced the U.S. Treasury Department would expand repurchases of longer-dated bonds.
Overview
U.S. Treasury Secretary Scott Bessent recently surprised the bond market by announcing that the Treasury would repurchase a larger amount of longer-duration bonds to ease longer-term yields, which have surged lately.
The announcement has received a lackluster response. Many believe the move is unlikely to constrain yields, while others are confused by the Treasury's decision. The yield on the 30-year U.S. Treasury bond has come off its highs after surging to 5.32% and was slightly below 5.19%, as of this writing (Aug. 25).
Details
The move could have unintended consequences, particularly for Fed Chair Kevin Warsh.
Source
Originally published at www.fool.com.