Samantha LaDuc(@SamanthaLaDuc):Oh the timing!! Bessent intervenes tactically ahead of a soft 20-year Treasury auction. The auction tailed by 0.5 bps with the bid-to-cover ratio falling below both the prior auction and six-auction average.

2026.08.19 17:42

Oh the timing!! Bessent intervenes tactically ahead of a soft 20-year Treasury auction. The auction tailed by 0.5 bps with the bid-to-cover ratio falling below both the prior auction and six-auction average.

Samantha LaDuc@SamanthaLaDuc

2026.08.19 16:47

ONLY reason why Bessent is intervening: Buyers strike on longer-duration bonds. From: 1. Corporate IG issuance at higher yields attracting fixed income away from UST auctions. 2. Inflation risks on falling dollar, war, fiscal dominance, etc 3. Bond raiders & Yen shorts re-engaging. As Geoffrey sums up, Bessent's "move is a nicotine patch for lung cancer." @GraphCall Chart h/t @Adam__Josephson "Buybacks represent a tiny fraction of the Treasury market even after being temporarily upsized, and need to be funded with yet more short-term debt."