Key Takeaways
• Bessent’s Buyback is Just Ramping Up: There is all sorts of confusion surrounding the Bessent bond buyback last week — and the impact thus far has been fleeting, that much is for sure. The view that this current operation is political because it ends on November 4th, the day after the midterms, is baseless because that is the date of the November 4th Treasury refunding statement. And if, as I suspect, there will be a drive to reduce long-dated bond issuance by a lot and shift to short-term funding, then taking duration out of the marketplace should elicit a far better result for Mr. Bessent in terms of lower long-term yields than what has occurred thus far.
