The outcome of Besent’s long-duration bond rescue has already failed. His funding source is using short-term bonds to repo long-duration bonds, but now the 2-year Treasury yield has also surged sharply.
With only $6 billion in buybacks, the scale is far from enough—too little, too late. The “biscuit” is brewing a big pullback ahead of the Fed’s interest-rate decision. Although he’s trapped, 75,000 is very likely to be approaching in terms of timing soon.
With only $6 billion in buybacks, the scale is far from enough—too little, too late. The “biscuit” is brewing a big pullback ahead of the Fed’s interest-rate decision. Although he’s trapped, 75,000 is very likely to be approaching in terms of timing soon.