🦔Yesterday the Treasury doubled bond buybacks and yields dropped. Today yields are back above where they were before the announcement. The 30-year hit 5.25%, the 10-year reached 4.71%. The national debt officially crossed $40 trillion yesterday. WTI crude pushed toward $89 after Trump threatened economic warfare on Iran. The buyback bought about 18 hours of relief. My Take I compared the buyback to the yen intervention and expected a few weeks of breathing room. It lasted less than a day, which means the bond market took this even less seriously than the currency market took the yen defense. $4 billion in buybacks against $40 trillion in debt and $739 billion in quarterly borrowing wasn't enough to hold yields down overnight. Bessent went on CNBC today promising spending cuts are coming. The bond market has heard that from every Treasury Secretary for the last 20 years. Meanwhile oil is heading toward $89 because the Iran war has no end in sight, the July deficit was $432 billion, the highest monthly total since March 2021, and interest payments on the debt have hit $1.2 trillion this fiscal year. Bessent is trying to manage yields with a tool that amounts to less than 1% of quarterly borrowing, and yields are already back where they started. Hedgie🤗