Bessant initially attributed the bond market sell-off to oil prices, but later admitted, "I cannot control the bond market."
2026-10-05 19:20:17
Previously, US Treasury Secretary Bessant's high-profile statement, "I am the market maker," attempted to suppress bond short sellers and stabilize the US Treasury market through official pronouncements. However, the market did not follow official expectations, and US Treasuries experienced a significant sell-off, with the 10-year yield rising rapidly. Under the pressure of market conditions, Bessant's public tone shifted noticeably, moving from a hardline stance to a more moderate approach. However, he did not completely retract his previous views, continuing to explain a series of hot topics such as bond market volatility, inflation, AI, and overseas currency intervention from the government's perspective, insisting that the US economy and bond market still possess advantages in the long run. Bessant maintained that he "believes in the logic of market operation" and that "time is on the winner's side" in the bond market. 
High-Profile Statement Meets Backlash: "I'm the House" Faces Reality in Bond Market After his attempt to influence the bond market through rhetoric failed, U.S. Treasury Secretary Scott Bessant adopted a more pragmatic and low-key approach. In a public interview with investors last month, Bessant made a strong statement with a casino-like metaphor: "I am the house now." This statement was intended to send a deterrent signal to bond short sellers, publicly warning market bears that if they insisted on betting on a weakening U.S. Treasury bond market and going against the official stance, they were free to proceed. Market participants were not deterred by the official's statement, and a large amount of trading capital chose to side with the short sellers, betting on a continued weakening of U.S. Treasury bonds. Faced with the market's reversal, Bessant's public tone has now noticeably softened. Recently, he changed his previous assertive stance and directly admitted: "I cannot control the bond market." In the interval between these two contrasting public statements, the U.S. Treasury market experienced a sharp sell-off, with the 10-year Treasury yield surging by nearly 50 basis points in a short period. Rich Privorotsky, head of trading at Goldman Sachs' DeltaOne, directly commented that the current US Treasury market is "completely devoid of buying support." In the basic trading logic of bonds, yields and bond prices move inversely; a sharp jump in yields indicates a rapid decline in bond prices. Defending his position: Attributing the bond market sell-off to oil prices, emphasizing probability and a long-term perspective In defending his previously controversial "market manipulator" theory, Bessant stated that the core driver of this round of US Treasury sell-offs came from external factors, namely the pressure from continuously rising international oil prices, not simply the market opposing the Treasury. He further elaborated on his viewpoint using casino logic, stating that even the house cannot win every hand; "the house wins by probability, and over a longer time frame, they will ultimately profit." In his understanding, bond market volatility should not be limited to short-term price fluctuations but should be assessed over a longer period. Bessant made a core prediction: since President Trump's reinstatement in January 2025, the US bond market will be among the best-performing bond markets globally. However, the article also points out that, based on objective data comparison, the actual total return of 10-year Chinese and Swiss government bonds significantly outperformed the US bond market during the same period. When Allen pointed out to him that the bond market had already responded to the previous official tough stance with concrete market movements, Bessenter directly denied it: "No." This interview had a clear real-world context: In August of this year, Bessenter officially announced that the US Treasury planned to expand the scale of its bond repurchase program, with the policy's initial intention being to curb the rapid rise in US Treasury yields. When pressed by reporters on whether this move represented the Treasury Department actively intervening in the secondary market, Bessenter explicitly refuted this interpretation: "We are not an actively intervening Treasury Department." Extending to overseas cases: Citing Argentina's currency intervention to prove policy effectiveness During the interview, Bessenter also proactively extended the topic to overseas economic intervention cases to prove that relevant US policy tools could achieve the desired results. He highlighted the relevant actions taken by the US in the summer of 2025 to maintain the stability of the Argentine peso exchange rate. In his account, this cross-border intervention indirectly helped Javier Milley win the Argentine election and brought about a significant shift in the political landscape of Latin America, prompting many countries in the region to favor closer cooperation with the United States. He used this case to illustrate that relevant US fiscal actions can have a positive impact on overseas markets and the geopolitical landscape. Understanding the Domestic Macro: Official Stance on Inflation, AI, and Household Economic Data This interview covered a wide range of topics, including the bond market, inflation levels, the prospects for artificial intelligence development, and the domestic economic situation. Regarding the current inflation performance, Bessant defended the administration's policy achievements. He pointed out that US grocery inflation was only 2.2%; the surge in energy and fuel prices only pushed up "overall inflation," which is a short-term, temporary disturbance and will not evolve into long-term, persistent inflationary pressure. Bessant directly refuted the prevalent "AI doomsday theory" in the market. He judged that artificial intelligence technology would continue to boost overall societal productivity; and the current rise in market interest rates is partly driven by the predictions of major mega-technology companies that AI will bring huge transformative dividends, thus generating a very strong demand for capital financing. Many companies need to borrow in the market to develop AI-related businesses. Facing various criticisms of the current government's overall economic performance, Bessant responded with two sets of core livelihood data: domestic wage levels have risen significantly, while household consumption expenditure remains resilient, demonstrating that the fundamentals of the US domestic economy remain solid. Latest market performance: US Treasury yields remain high in the short term. In Monday morning trading, the yield on the 10-year US Treasury bond did not see a significant reversal, generally continuing the level of Friday's closing, with trading concentrated around 5.27%, remaining in a high-yield range in the short term.
High-Profile Statement Meets Backlash: "I'm the House" Faces Reality in Bond Market After his attempt to influence the bond market through rhetoric failed, U.S. Treasury Secretary Scott Bessant adopted a more pragmatic and low-key approach. In a public interview with investors last month, Bessant made a strong statement with a casino-like metaphor: "I am the house now." This statement was intended to send a deterrent signal to bond short sellers, publicly warning market bears that if they insisted on betting on a weakening U.S. Treasury bond market and going against the official stance, they were free to proceed. Market participants were not deterred by the official's statement, and a large amount of trading capital chose to side with the short sellers, betting on a continued weakening of U.S. Treasury bonds. Faced with the market's reversal, Bessant's public tone has now noticeably softened. Recently, he changed his previous assertive stance and directly admitted: "I cannot control the bond market." In the interval between these two contrasting public statements, the U.S. Treasury market experienced a sharp sell-off, with the 10-year Treasury yield surging by nearly 50 basis points in a short period. Rich Privorotsky, head of trading at Goldman Sachs' DeltaOne, directly commented that the current US Treasury market is "completely devoid of buying support." In the basic trading logic of bonds, yields and bond prices move inversely; a sharp jump in yields indicates a rapid decline in bond prices. Defending his position: Attributing the bond market sell-off to oil prices, emphasizing probability and a long-term perspective In defending his previously controversial "market manipulator" theory, Bessant stated that the core driver of this round of US Treasury sell-offs came from external factors, namely the pressure from continuously rising international oil prices, not simply the market opposing the Treasury. He further elaborated on his viewpoint using casino logic, stating that even the house cannot win every hand; "the house wins by probability, and over a longer time frame, they will ultimately profit." In his understanding, bond market volatility should not be limited to short-term price fluctuations but should be assessed over a longer period. Bessant made a core prediction: since President Trump's reinstatement in January 2025, the US bond market will be among the best-performing bond markets globally. However, the article also points out that, based on objective data comparison, the actual total return of 10-year Chinese and Swiss government bonds significantly outperformed the US bond market during the same period. When Allen pointed out to him that the bond market had already responded to the previous official tough stance with concrete market movements, Bessenter directly denied it: "No." This interview had a clear real-world context: In August of this year, Bessenter officially announced that the US Treasury planned to expand the scale of its bond repurchase program, with the policy's initial intention being to curb the rapid rise in US Treasury yields. When pressed by reporters on whether this move represented the Treasury Department actively intervening in the secondary market, Bessenter explicitly refuted this interpretation: "We are not an actively intervening Treasury Department." Extending to overseas cases: Citing Argentina's currency intervention to prove policy effectiveness During the interview, Bessenter also proactively extended the topic to overseas economic intervention cases to prove that relevant US policy tools could achieve the desired results. He highlighted the relevant actions taken by the US in the summer of 2025 to maintain the stability of the Argentine peso exchange rate. In his account, this cross-border intervention indirectly helped Javier Milley win the Argentine election and brought about a significant shift in the political landscape of Latin America, prompting many countries in the region to favor closer cooperation with the United States. He used this case to illustrate that relevant US fiscal actions can have a positive impact on overseas markets and the geopolitical landscape. Understanding the Domestic Macro: Official Stance on Inflation, AI, and Household Economic Data This interview covered a wide range of topics, including the bond market, inflation levels, the prospects for artificial intelligence development, and the domestic economic situation. Regarding the current inflation performance, Bessant defended the administration's policy achievements. He pointed out that US grocery inflation was only 2.2%; the surge in energy and fuel prices only pushed up "overall inflation," which is a short-term, temporary disturbance and will not evolve into long-term, persistent inflationary pressure. Bessant directly refuted the prevalent "AI doomsday theory" in the market. He judged that artificial intelligence technology would continue to boost overall societal productivity; and the current rise in market interest rates is partly driven by the predictions of major mega-technology companies that AI will bring huge transformative dividends, thus generating a very strong demand for capital financing. Many companies need to borrow in the market to develop AI-related businesses. Facing various criticisms of the current government's overall economic performance, Bessant responded with two sets of core livelihood data: domestic wage levels have risen significantly, while household consumption expenditure remains resilient, demonstrating that the fundamentals of the US domestic economy remain solid. Latest market performance: US Treasury yields remain high in the short term. In Monday morning trading, the yield on the 10-year US Treasury bond did not see a significant reversal, generally continuing the level of Friday's closing, with trading concentrated around 5.27%, remaining in a high-yield range in the short term.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
