Treasury Secretary Scott Bessent has initiated an intervention in the U.S. Treasuries market by doubling buybacks to at least $4 billion, a move reminiscent of "Operation Twist." This strategy aims to lower long-term yields by purchasing long-term debt and selling short-term debt, thereby flattening the yield curve. However, historical precedents, including Bessent's involvement in the 1992 Soros raid on the pound, suggest such interventions often fail as markets can outmaneuver government officials. Previous "Operation Twist" attempts by the U.S. Federal Reserve and the Bank of Japan have had mixed results, often dependent on accompanying monetary policy and inflation trends. AI
RANK_REASON A significant policy intervention by a major government's treasury department. [lever_c_demoted from significant: ic=1 ai=0.1]
- Bank of England
- Bank of Japan
- Ben Bernanke
- Operation Twist
- Scott Bessent
- Soros
- trump
- U.K. Treasury
- U.S. Treasuries
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