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

This is a rare case of fiscal policy explicitly targeting positioning rather than fundamentals. The significance lies in the mechanism: with CTAs already at record shorts, buybacks and restructuring can force covering, but only temporarily—structural deficits and inflation remain the dominant drivers. The affected parties are macro funds and anyone trading rates on positioning cues. The open question is whether Bessent can engineer a durable move through 4.3% or merely trigger a squeeze that reverses once forced buying ends.