🌟🌟🌟Despite US Treasury Secretary Scott Bessent's recent action to prop up the bond market, the selloff of the US bonds has only worsened. The benchmark 10 year Treasury yield has surged toward 4.93%, its highest level since late 2023.
By tripling the US government's standard bond repurchase limit to USD 6 billion, Bessent attempted to artificially constrain bond supply, drive prices up & push down the yields.
But the market is not buying it. Why?
Global macro funds view a USD 6 billion buyback as entirely too weak to combat a USD 32 trillion US government debt market that must continuously absorb heavy issuance to fund a USD 2 trillion annual deficit.
Then there is energy shock caused by the war in Iran and high corporate debt demand for the AI buildout plus a hawkish Fed Chair. All these factors are pushing the global cost of money higher.
@Tiger_comments @TigerStars @Tiger_SG
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