US treasury secretary hails government’s buy back of bonds a success — On Tuesday, the 10-year treasury rate yield reached a 19-year high at 5.041%

1147 points by marketrent 9 hours ago on reddit | 109 comments

AR475891 | 9 hours ago

It seems that the rest of these fools have fallen down the same rabbit hole as their dear leader. They’re at a point now where they are confusing reality with their hopes because their brains have melted.

ActualSpiders | 9 hours ago

They only have jobs so long as they keep Dear Leader happy & tell him what he wants to hear. Their delusions are entirely self-serving.

That said, we need to remember these spineless liars and ensure they are ostracized from any level of professional respect forevermore.

AvailableYak8248 | 9 hours ago

After it’s all said and done, the tax payers will pay for this, these guys will run off with millions

tbisahw | 8 hours ago

Billions. Maybe trillions.

Koshindan | 5 hours ago

Hey, maybe hyper inflation will make that number not so high after all.

Hautamaki | 7 hours ago

If that really happens, democracy in the US and therefore most likely eventually much of the rest of the world will be over. If you can get away with literally anything so long as you lie convincingly enough to the lowest common denominator voters enough to con your way into office, and never suffer any consequences even if you're caught red handed because you can just declare yourself immune and the opposition just respects that immunity, people will learn 2 lessons. First, that the opposition likely respects that immunity only because they plan to be able to get away with the same crimes when it's their turn, and secondly, you might as well just do whatever you want because it's all upside and no downside even if you're caught.

Democracy cannot possibly survive when the majority of people believe those two things, and with the US actively hostile to other democracies instead of being one of their most reliable supporters of last resort, a lot of other democracies are liable to fall as well.

washburn100 | 6 hours ago

Democracy in the US may change but don't speak for the rest of the educated world.

Anxious-Box9929 | 2 hours ago

This ^^

Another one who believes that the world is US + the rest. Tbh the rest of the educated world is fed up of this kind of bullshit.

authentic_swing | 6 hours ago

Democracy and capitalism can work when regulated, especially when democracies are designed to hold corrupt individuals accountable.

What most Americans don’t realize, especially boomers, is that they’ve let their democracy erode over the last 25 years. They’ve let hate and racism skew their judgement.

The US may change, but the world will keep on moving.

L4gsp1k3 | 3 hours ago

It's billions and billions and billions.

Individual_Limit_701 | 7 hours ago

Declaring a buyback program a success while the 10-year benchmark surges past 5% is peak messaging dissonance. With issuance deficits remaining astronomical, managing off-the-run liquidity doesn't fix the reality that higher debt servicing costs will crowd out federal budgets

ActualSpiders | 7 hours ago

Don't worry - those $5k checks will grow us all out of this debt!

sgtbackpain03 | 2 hours ago

> ensure they are ostracized from any level of professional respect forevermore.

They all seem to be growing exceptionally wealthy during this admin, so I'm guessing that would be quite difficult. Money buys access and advertising and their own research teams and whatnot.

Yep, Bessent was easily confirmed with 68 votes, including 16 democrats. He was expected to be one of the voices of reason within the cabinet. Now he's as sycophantic and gutless as anyone else in this administration.

Tresach | 8 hours ago

My understanding is he tried early on to push back on some things at least thats what rumors out of the white house seemed to indicate. Im guessing once he realized that trump was truly beyond control he made the choice to hold onto his position and sacrificed his soul to the party line.

ButtStopsHere | 6 hours ago

I'm thinkin he's had plenty of experience pushing back on guys

sgtbackpain03 | 2 hours ago

It was like watching someone get flipped, in realtime, but slowly over a year. First he was the voice of reason, then he started looking more uncomfortable about answering questions, then he would equivocate and pass off questions, then he started looking more confident and using the party lines, and now he's running with his own hair brained version of Trump's orders, telling everyone he's the House now, really selling it.

Wasn't he already a billionaire when the admin started?

ringobob | 7 hours ago

No one who has any real awareness of what's happening is under the impression that it's possible to be a voice of reason anymore. It was only barely possible during Trump's last term, you couldn't actually talk Trump out of anything, just delay and hope he lost interest.

But anyone who expects him to actually listen to literally anyone that isn't telling him exactly what he wants to hear is either delusional or stupid, at this point. This goes triple for our elected officials who should know way better than the rest of us.

jiggajawn | 9 hours ago

We should've removed lead from products so much earlier

WurdaMouth | 8 hours ago

I would have starved, brother.

Anxious-Shapeshifter | 9 hours ago

Everyone's thinks they're genius trader in a Bull market.

truthinessembargo | 8 hours ago

Falling for their own propaganda…

frozenhotchocolate | 9 hours ago

Bessent is a stutterer, but damn did he look the most lost I've seen him.

HappilyDisengaged | 9 hours ago

How is this the United States government?

Jesus_on_a_biscuit | 8 hours ago

But it sure is great that the media gives them a platform to share their insanity largely unchallenged. Hooray for the free press!

Ass-Master1 | 6 hours ago

Bessent doesn't give a shit. He's already a billionaire

Let them eat dirt

anewleaf1234 | 6 hours ago

Welcome to life under authoritarian states.

The numbers are only what the leader says they are. Everyone else is just following orders.

dually | 2 hours ago

Exercising an arbitrage opportunity in the bull-steepened yield curve does not make you authoritarian.

If you could profit by buying low and selling high would that make you an authoritarian.

Harbinger2001 | 7 hours ago

Their only goal is to give Fox News a sound bite Trump can see. Trump gets his “reality” from TV.

Visible_Wolverine2 | 4 hours ago

They are so far committed, it is their only hope at this point. Full send and hope he can protect them. That’s all they’ve got.

QuantGuru | 3 hours ago

Remember republicans and the Orange army did this to your America.

- message from canada

TheTench | an hour ago

Trumpian Economics:

  1. Fuck something up
  2. Claim it was a huge success
  3. Profiteer from the chaos
  4. Create a distraction (back to step 1)

I believe this is just outright Goebbels-like lie.

tourdeforcemajeure | 39 minutes ago

No they just hope you are.

Emotional_Goal9525 | 32 minutes ago

No they haven't. It just that people don't want to tell the bad news to the dictator. It has always been like that everywhere.

12-34 | 9 hours ago

>Since President Trump came in, [the US bond market] has been the best-performing bond market in the developing world.

"Developing world"? At least this gasbag knows where the Chancellor's economic and social policies take us.

Basicly-Inevitable | 8 hours ago

"Compared with Zimbabwe, things are looking fantastic!"

Hi-technik | 5 hours ago

"If the government hadn't intervened, the 10 year yield would've been 10%", so it's a success, according to Bessent.

wormtheology | 9 hours ago

Deeply unserious toadstools running the US financial apparatus now. They’ll rip the copper out of the pipes then wonder why no one rents the fucking house. Bessent better be ready to do this bond market saving operation for the rest of President Trump’s term assuming he doesn’t get fired first or resigns. There is no “claiming victory” on this until its over. Something tells me that this melt up is most certainly not over.

eskimoboob | 9 hours ago

6B is peanuts in the bond market. They will absolutely try to ramp it up and fail

weatherwar | 7 hours ago

Yeah, I'm not sure why people are pretending this matters. Bessent or these comments.

A $6B buying program is like Pluto next to the Sun.

authentic_swing | 6 hours ago

$1T in bonds trade daily

$30T total market.

Here’s $6b, buy yourself a beer

crustyrobots | 4 hours ago

Probably should have started getting the national debt under control about....30 years ago

CloudTransit | 9 hours ago

Do business titans meet with this guy, and not consider it a waste of time. Does this guy have a truth switch? Like if you represent more than 100 billion in assets, then you can activate the truth switch?

This guy is discrediting the entire financial system. If the people working at all the pooled money places are relying on what this guy says, then their idiots.

Maxpowr9 | 8 hours ago

Why do you think bond rates keep going up? There is little investor faith in the US Government.

Businesses also know that Congress will gladly bailout Wall Street and continue to leave Main Street broke.

Substantial-Elk4531 | 8 hours ago

> Deeply unserious toadstools running the US financial apparatus now.

In stark contrast to the previous series of administrations and bankers over the past 20 years who carefully guided us into a national debt of over 100% of GDP and consumer debt of nearly 70% of GDP

iareslice | 5 hours ago

Congress actually decides when to spend money. At least, until like a year and a half ago when everyone with power decided the president could spend money arbitrarily

kimchikimchiATL | 9 hours ago

Bessent : [ in that slightly menacing, evil finance queen voice ]
“I have asymmetric information. I am the house now.”
“You can bet against me if you want.”

Bessent : [ promptly get trampled ]

Own_Pop_9711 | 9 hours ago

The last time someone made a billion dollars betting directly against an English speaking developed world Treasury department was 30 years ago, what are the odds it can happen again?

leftguard44 | 7 hours ago

You mean shaky stuttering slightly evil finance queen voice?

kimchikimchiATL | 7 hours ago

LOL. We don't make fun of speech impediments. Bessent can *choose* to be not evil but alas.

leftguard44 | 6 hours ago

Does he have a speech impediment? I thought it was just nerves from having to lie his ass off 24/7 lmao

[OP] marketrent | 9 hours ago

Part of article by Lauren Aratani in New York:

Scott Bessent, the US treasury secretary, claimed the government’s massive buyback of US bonds was a success.

The claim came as the 10-year treasury yield reached a 19-year high on Tuesday, increasing pressure on interest rates as the Federal Reserve weighs another hike to see off rising inflation.

US treasury yields, or the rate of return that investors receive when a bond matures, underpins the rates of other loans such as mortgage, car payments and credit card debt. On Tuesday, the yield rate for the 10-year treasury reached 5.041%, the highest level since 2007.

The treasury yield rises when demand for bonds goes down. Though the US bond market is typically seen as one of the safest investment vehicles, investors have been wary of the effect the war in Iran is having on energy prices

Brent crude, the global benchmark for oil prices, hit $108 a barrel last week for the first time since May.

 

When bond yields started to rise in August, the US treasury announced it would triple its buyback of government debt, going from $2bn to $6bn in an effort to bring down bond yields.

Though the yields have continued to rise since, Bessent told Congress on Tuesday the operations are “the two most successful treasury auctions that we’ve had in 20 years”.

“Since President Trump has come in, (the US bond market) has been the best-performing bond market in the developing world,” Bessent said.

Earlier in August, the US government also stepped in to prop up the Japanese yen, a move that was seen as an effort to protect the Japanese government, a major holder of US bonds.

Bessent told Congress the effort was a way for the US to signal support for Japanese policies.

Pjpjpjpjpj | 9 hours ago

"The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command."

thaway314156 | 9 hours ago

In the early days of the baffoon Trump I regime, Sean Spicer (remember that asshat?) was screaming about crowd sizes at the inauguration, someone made the comment that it was a loyalty test, the truth doesn't matter, what matters was that people showed loyalty to the leader and the lies he believed...

DBWlofley | 9 hours ago

Well you know, when reading that book it's pretty clear that life is really good for the party and it's leaders so I mean, was what they did wrong? Depends on who you ask I suppose. Just don't be silly and get stuck in the lower class.

Sure 1984 taught us a lot, but I think we can also learn from the wisdom of Arrested Development on this one about just not being poor. Seems like if you combine the two stories, you can find happiness.

truckaxle | 9 hours ago

Wait I must not understand bonds.

Is he saying that higher US Bonds yields are good thing for America and that is what he wanted to see happen.

Please help me understand

FancyEmployee8672 | 9 hours ago

he’s saying that everything they’re doing is the best any administration has ever done. the bond market is saying, I ain’t trusting to lend you any more money unless you give me more in return than any other one of your bonds has for the last 19 years. who do you believe?

Slight_Turnip_3292 | 8 hours ago

But why would lie in face of the economic facts?

FancyEmployee8672 | 8 hours ago

the same reason a dog licks his own asshole: because he can.

dogs_gt_cats | 7 hours ago

Why would a crackhead smoke crack when they know it is bad for them?

Alib668 | 9 hours ago

So bond price and bond yield are inversely related

This is because the coupon payment is fixed

I will get 100 coupon every year. If I lend you 1000 my yeild is 100/1000 or 10%. If I lend you 2000 my coupon is still 100 so 100/2000 is 5%

As yields rise the capital value of the bond decreases. Therefore as the treasury needs to get to the same X money borrowed must pay extra coupons aka extra interest

Cueller | 5 hours ago

Its the most beautiful bond market to ever exist. Even Bill Gross is impressed with its magnificence, and when he called Trump he asked "Mr President, how did you get so good at bonding?"

dually | 2 hours ago

Bull-steepening is always a positive economic indicator.

thediesel26 | 9 hours ago

Petrodollar in full effect.

dually | 2 hours ago

There is no such thing as a petro dollar.

Oil trade amounts to only $1.27trillion per year, but total fx volume is $9.6trillion per DAY. Partisans want to blame oil for the 70s whilst ignoring the cumulative consequences of 40 years of New Deal tax rates.

Euler007 | 9 hours ago

Just print money to buy back bonds. Why did no one think of it before? It literally cannot backfire. Just ask Argentina. What's up with the 140 character limit.

TortyPapa | 8 hours ago

You mean a failed hedge fund manager (even with a free $2 billion of start up capital from his former boss George Soros) can’t fix the biggest bond market in the world on his own? Shocking.

crustyrobots | 4 hours ago

Even Bessent's mentors are calling him a retard for what he's doing

AyeMatey | 8 hours ago

Roy Cohn was Donald Trump’s early guru.
Cohn’s three rules of politics:

- attack attack attack - anyone who opposes you
- deny everything - even past the ridiculous line
- declare victory even in the face of overwhelming evidence to the contrary.

Seems like Mr Bessent is employing rule #3 here.

authentic_swing | 6 hours ago

“Since President Trump has come in, (the US bond market) has been the best-performing bond market in the developing world,” Bessent said.

On Tuesday, the 10-year treasury rate yield reached a 19-year high at 5.041%

Republicans are so fucking dumb they probably think a high bond yield = winning

CoolBreezeBrew | 8 hours ago

Scott Bessent is an incompetent lackey that only serves Trump. He has no business being in his position. He should go back to Russia and serve his Kremlin masters.

crustyrobots | 4 hours ago

This dumbass turned a $2 Billion fund into $400 million and was then rewarded with the highest financial job in the land...

astrawberryandakiwi | 8 hours ago

Okay, there has to be some law somewhere out there that prevents our own elected government (no I didn’t vote for him) for lying to our fucking faces. What the fuck

iAwesome3 | 4 hours ago

It’s called perjury but unfortunately our politicians seem to have left their spines at home

Own-Bullfrog7803 | 8 hours ago

It may have actually been a success. Without it the ten year treasury would have been 6%. Thank god we are being protected by these B team grifters.

IntroductionOk9280 | 7 hours ago

Trumps policies are inflationary. Tariffs, the war in Iran (which is driving up oil prices) and immigration. Yet he somehow expects interest rates to fall. Maybe Mr. Bessent should explain to the President how economics work.

That-Interaction-45 | 6 hours ago

This dude is as much a tool as Dump is. They are burning down every single American institution they can get their hands on.

Joke will be on our kids I guess.

joepez | 7 hours ago

Is success in the room with us? Bond yields are up. Plus 6B is a drop in the ocean when you’ve issued 40T.

What’s that one quote? It’s about how much pain you want to absorb before you give up?

SDAztec74 | 8 hours ago

Scott, come here, come closer, don't be shy, I have to tell you something, something very important you need to hear. Son, the Emperor has no clothes.

BradBeingProSocial | 7 hours ago

Pardon my ignorance, but where does he get the money to buy these bonds? Like what bucket of money is he spending from, and is there a limit?

deadrock_7 | 5 hours ago

They're issuing shorter term debt to buy back the longer term debt is the simple explanation for this. They're selling say 2 year bonds to buy back the longer dated bonds. It's all just fancy money movement that doesn't actually involve printing money directly but these actions won't have any real impact on things since they are buying back such a small fraction of the debt

authentic_swing | 6 hours ago

I’d also like to understand this. It’s not like they can print money to buy back bonds, because that’s what a US Treasury bond is.. so they’re buying back bonds with tax payer dollars instead of reducing the national debt.. but isn’t that the same thing?

diamanthaende | 2 hours ago

Yes, they are all extremely incompetent, unbelievably so.

But take a closer look at their net worth. They are robbing you blind!

Even complete utter failures like Lutnick have basically doubled their net worth since they joined the government.

It’s not just an epic shitshow of incompetence, it’s the heist of the century!