Analysts Say Besant Needs to Work Harder to Rebuild Market Confidence

The bond market has recently sent a signal to Treasury Secretary Besant, indicating that the $40 trillion U.S. national debt cannot be ignored. Besant plans to increase the scale of long-term Treasury bond repurchases this fall and has committed to using the Treasury's "toolbox" to support the market, while also mentioning new measures to address the growing debt burden. Former Enron energy trader John Arnold stated that the turmoil in the bond market may be a temporary phenomenon, but the ongoing deterioration of the U.S. fiscal situation could trigger a larger crisis. Tracy Chen, a global portfolio manager at Brandywine, expressed concern over Besant's failure to curb long-term Treasury yields, believing that the bond market lacks trust in him. Analysts point out that Besant needs to take more actions to persuade investors that the Trump administration is taking fiscal issues seriously, but discussions of tax increases or austerity measures may face opposition before the midterm elections in November.

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