Bessent’s Play: Squeeze Bond CTA, Target 4.3% Yield?

TREE NEWS reports: Treasury Secretary Bessent is reportedly using interventions like buybacks and debt restructuring to trigger a short squeeze on CTA bond shorts, aiming to push the 10-year yield down to 4.3% before midterms. Goldman data shows record CTA short positions, making conditions ripe for a squeeze. However, analysts doubt the effectiveness given structural deficits and inflation.