Bessent said the US was to double its Bond buy back scheme in an effort to steady the market and stop the rise of the 10 year Treasury yield which was fast approaching 5%.
The yield did drop back on the news but only for a day or 2. Bond buy back is like QE. Printing money for the government to prop up the bond market is a tough job.
Bessent increased the buy back from $2 billion to $4 billion and said he was willing to ‘do what it takes’ but remember the US debt market is $40 Trillion.
Compared that to the $3 Trillion crude oil market.
He's just not going to be able to manipulate the bond market like the oil market.
Gold sold off after the start of the Iran war as many countries suddenly had a cash flow problem but has recently turned upwards again as more central banks see a need to increase Gold holdings for an increasingly uncertain future at the same time as they lose confidence in US Treasures.
Oil is on the rise again having been beaten down to $73 for WTI and is now around $85 as there is a stand off in the Iran war. Trump has nothing up his sleeve and does not seem able to just walk away. The Iranians are meanwhile threatening to take the initiative and attack rather than just retaliate.
Trump tells us that he has opened the Straits and everything is fine but no one believes shipping is anywhere near pre-war levels.
To Ukraine, and Brazil are attempting to get Putin to talk to the Ukrainians. The Ukrainians are getting desperate to get the air strikes to stop, especially the ones that have stopped all shipping in and out of Odessa. All of Ukraine’s major trade income has ceased and big weapons shipments have halted, individual missiles (those that they can find to buy) are now being transported across borders individually in the back of SUVs.
Zelensky, besides using Brazil to contact the Russians, has tried to make direct contact but got nowhere. Putin made clear in recent speeches that any kind of a ceasefire is out of the question and Russia’s demands are on the table for all to see.
COUNTRIES DUMP U.S. BONDS, REPLACE DOLLARS WITH GOLD — w/ Jeffrey Currie
