US Treasury Secretary, Scott Bessent’s decision to tap the $1 trillion Treasury General Account to fund bond buybacks after US 30-year treasury yields climbed to a post-2007 high is a major red flag for investors, says Nigel Green, chief executive of deVere Group.
Green said the move suggested policymakers were responding to growing pressure in the bond market rather than addressing the underlying causes of rising long-term borrowing costs.
“When a government has to step into the market and start buying back its…