Scott Bessent has cemented his status as the most hands-on U.S. Treasury Secretary in decades following a series of unexpected moves this year, as he leverages his credibility to curb a potentially destabilizing rise in American borrowing costs. Wednesday brought yet another surprise. The Treasury announced it would at least double the scale of its liquidity support buyback operations for 10- to 30-year bonds, just two weeks after unveiling the schedule for older debt repurchases. Earlier this month, the department had already opened the door to reducing issuance of longer-dated securities. On July 31, Bessent orchestrated the first U.S. purchase of yen in 30 years, a step widely seen as lowering Japan's need to sell Treasuries to fund its currency interventions. Earlier this year, he also initiated so-called rate queries—where officials call banks to ask for yen quotes—a tactic that even caught a former Japanese official off guard.
"He's definitely a man of action," said Mark Sobel, a former U.S. Treasury official now at research group OMFIF. Noting Bessent's hedge fund background, Sobel added, "It's pretty clear to me that he and the administration are deeply worried about the rise in long-term yields." The Treasury has not responded to requests for comment on Bessent's market actions. As steward of U.S. economic policy and financial markets, Treasury Secretaries have often been forced to intervene during crises. But that's not the case now, as the bond selloff has been orderly and has persisted for months. Yet, when the 10-year Treasury yield—a key financial benchmark for Bessent—rose above levels seen before Trump's return to the White House, he acted swiftly, signaling deepening concern in Washington. The yield climb, driven by investor worries over inflation, Federal Reserve policymaking, and massive fiscal deficits, has kept mortgage rates elevated and posed a headwind to economic growth with just months to go before the November election.
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