TREE NEWS reports: Treasury Secretary Bessent’s plan to double long-dated bond buybacks failed to curb rising yields, leading to a dollar drop, gold surge, and Bitcoin rally. Attention now turns to Fed Chair Warsh’s Jackson Hole speech, with markets hoping for clarity on inflation and policy. Analysts suggest an Operation Twist-style move could be needed to stabilize long-term rates.
Bessent’s Bond Rescue Fails, Fed’s Warsh Next
The failure of buybacks to move long-end yields is the tell: official demand alone isn't clearing duration supply, and the reflexive bid into gold and Bitcoin suggests markets are pricing that limit. Warsh's Jackson Hole remarks now carry outsized weight, since the same analysts floating an Operation Twist-style response imply conventional tools are seen as exhausted. Whether the Fed validates or resists that framing is the open question, and it likely sets the tone for both rates and hard assets into the autumn.
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