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Paradigm shift: from austerity to acceleration
From austerity...
In the early days of the administration, Scott Bessent was on the record saying he was focused squarely on getting the 10-year yield down.
Their priority was clear - lower borrowing costs for the mounting US debt, most pressingly for the ~$10T (trillion, with a “t”) to be issued throughout 2025.
The mechanism they chose to do so?
Tariffs + increased government efficiency.
Re-balance global trade imbalances. Re-onshore manufacturing. Spark a boom for main street. Cut “waste, fraud, and abuse.” Lower yields along the way.
It was “Main Street’s turn.”
...to acceleration
Initially, yields did the administration’s bidding, with the 10-year dropping below 4.0%.
But then, they rebounded sharply, rising to ~4.5%, where the administration started pivoting. 1 reply
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