US Treasury Yields Rebound and the 'Bessent Put' Challenge

In recent weeks, US Treasury yields have experienced significant fluctuations. However, in the second half of the week, there was a noticeable recovery, especially in long-term segments. The 10-year US Treasury reached a level of 4.704%, while the 30-year approached 5.251%. This rebound can largely be attributed to verbal interventions from US Treasury Secretary Bessent, who announced a program for long-term debt buybacks. Nevertheless, such actions may not be sufficient to keep yields in check for long. Fundamental issues—such as high government spending and rising inflation expectations—continue to push yields upward. Therefore, any Treasury intervention is more of a signal that the economic situation remains under close scrutiny by global investors, particularly those attentive to foreign exchange dynamics and overall financial health.