Treasury vs Fed showdown heating up 🔥
Bessent (Treasury): "I'll flood the market with TGA firepower if I have to"
Warsh (Fed): "Nah, we're staying disciplined"
Result? Rates climbing.
Warsh is forcing Bessent's hand on the long end while Treasury pumps out higher-yielding bills. Classic policy tension.
This tug-of-war is making duration plays messy. Watch the curve closely—someone's gotta blink first.
Bessent (Treasury): "I'll flood the market with TGA firepower if I have to"
Warsh (Fed): "Nah, we're staying disciplined"
Result? Rates climbing.
Warsh is forcing Bessent's hand on the long end while Treasury pumps out higher-yielding bills. Classic policy tension.
This tug-of-war is making duration plays messy. Watch the curve closely—someone's gotta blink first.