Trump Says Bessent Acted on His Own in Treasury Bond Intervention

US President Donald Trump said that he did not direct Treasury Secretary Scott Bessent to intervene in the bond market and that Bessent acted on his own authority based on his understanding of market conditions, Kanishka Singh reported for Reuters.

US Treasury Secretary Scott Bessent has defended the Treasury's bond-buyback strategy as long-term US government bond yields remain elevated. [Photo: FDFA Federal Dep. of Foreign Affairs Flickr]

Bessent said recently that the government could further increase its Treasury repurchases after the Treasury Department surprised markets by announcing that it would double the expected size of its bond-buyback operations.

“No, not at all,” Trump told reporters on Friday when asked whether he had directed Bessent to intervene in the bond market.

“He's a very capable man. He wanted to do it. He's very good at it,” Trump said. “He did that, yeah.”

Bessent, a former hedge fund manager, has extensive experience in sovereign debt and currency markets. However, much of the decline in bond yields triggered by the Treasury's announcement had been reversed.

Long-term Treasury yields have recently risen amid concerns about the US government's growing debt, inflation remaining above the Federal Reserve's 2% target and the implications for investment flows.

The Treasury's intervention has added another layer to the debate over US monetary and fiscal policy, as the department seeks to support the long-term Treasury market while the Federal Reserve continues to confront above-target inflation and elevated long-term borrowing costs.