Can Bessent's Bond Buyback Work?

Summary

Scarlet Fu and Stephanie Roth discuss the Treasury's surprise increase in longer-dated bond buybacks and whether it can stem the rise in long-end yields. Fu argues long-end yields may keep drifting higher unless the buyback marks a new regime, while Roth expects future economic shifts to eventually bring Treasury yields lower. They agree the buyback alone cannot fix a fundamental global issuance problem.

• US Treasuries fell after the Trump administration's surprise increase in longer-dated bond buybacks.
• The move did little to counter concerns about surging government debt and some yields hitting 19-year highs.
• Scarlet Fu says long-end yields may drift higher unless buybacks become a new regime.
• Stephanie Roth says Treasury buybacks cannot solve fundamental supply-demand issues.
• Roth expects economic dynamics to change and bring relief to Treasury yields.
• The discussion highlights global issuance and elevated real 30-year yields.