Bessent's Plan May Signal Trouble for U.S. Economy Amid Rising Bond Yields
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The Bridgewater Associates founder said Bessent's plan to increase government debt purchases may portend trouble for the U.S. economy. Coupled with the Japanese government reducing its U.S. bond market exposure and surging long-dated American bond yields, Dalio said investors may want to prepare their portfolios for increased risk by owning cryptocurrencies and gold.
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BloombergDalio Says Sell Bonds, Buy Gold, Bitcoin as Debt Crisis Looms Billionaire Ray Dalio said investors should reduce their bond holdings and put as much as 15% of their money in gold to hedge against the risk of a US debt crisis that he warns could be just three years away.
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Experts say that bond yields have been spiking to highs not seen since the start of the Great Recession due to investor anxiety over a number of factors, including inflation, the size of the US government's debt, and Trump's illegal war with Iran.
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Epoch Times BusinessA broad array of factors has pushed up yields, including persistent war-driven inflation fears, fiscal worries, potential monetary policy tightening, and competition from artificial intelligence-related corporate bonds.
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Bessent’s action shows a desire by the Treasury Department to have greater control over market pricing
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Investors are wondering what Scott Bessent is up to. At the start of the month, the Treasury Secretary’s ‘to-do’ list included purchasing $5 to $10 billion in Japanese yen.
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MarketWatchU.S. Treasury Secretary Scott Bessent on Thursday indicated that his department could make additional moves in the wake of its announcement that it would at least double the size of its buybacks of longer-dated Treasury bonds.
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The Treasury Department said Wednesday it would at least double the size of liquidity-support buybacks for 10- to 30-year government debt, an effort to stabilize a selloff in longer-dated Treasurys. The announcement initially pushed Treasury yields lower and weakened the dollar, sending gold prices higher.
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Epoch Times BusinessFrom Sept. 9, the Treasury will double the size of its government debt repurchases to $4 billion, focusing its buyback operations on 10- to 20-year and 20- to 30-year bonds.
FortuneThis week, he announced the Treasury would increase “by at least double” the size of buybacks for longer-dated securities—and is prepared to expand the “fiscal consolidation” of purchasing back the costlier debt.
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Yields on long-term U.S. bonds fell midweek after the Treasury Department said it would expand long-end debt buybacks amid climbing rates.
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NPR EconomyAudio will be available later today. NPR's Leila Fadel speaks with Bloomberg's Stacey Vanek Smith about why the U.S. Treasury acted to push down long-term bond yields and how that relates to the ballooning U.S. debt.
CNBCLonger-dated U.S. government bond yields steadied on Friday, as investor jitters over the Treasury Department's extended debt repurchase program and soaring national debt continue to weigh on markets.
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The US Treasury is buying long bonds, but not very many Speaking loudly but wielding a teeny-tiny stick in
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RealClearMarketsThe US Treasury is buying long bonds but not very many. Read Full Article »
7 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 Bloomberg Bessent’s Bond Maneuvers Giving Global Debasement Trade New Life Scott Bessent’s bid to tame US borrowing costs knocked down long-term yields for barely a day. The more lasting market signal: the dollar weakened while gold and Bitcoin rallied, reinforcing a debasement trade fueled by swelling US deficits and concerns over the direction of US economic policy.
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02 Common Dreams 5 #000000 #FFFFFF "Trump is going to pump billions of dollars into the bond market to push down interest rates through the election, then let everything fall apart again," said one critic.
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03 MarketWatch The Fed Here’s how Bessent’s newly activist Treasury Department is undercutting the Fed’s Warsh
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04 CNBC Treasury Secretary Scott Bessent's debt buyback announcement this week fits into a broader pattern that can signal a forthcoming crisis, according to billionaire investor Ray Dalio.
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05 Fortune Analysts are generally nonplussed. The Japanese yen—while stronger against the dollar than in its June slump—has unwound to roughly the level it started the year at. The drift back to market-perceived fair value is “hardly surprising,” quipped UBS’s Paul Donovan.
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06 Financial Times Bitcoin and gold surge as Bessent’s bond market intervention weighs on dollar World’s biggest cryptocurrency on track for best week in more than three years
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07 Epoch Times Business A Treasury buyback is when the federal government purchases its own bonds before they mature, retiring older securities and replacing them with new issuance.
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