How Did Bessent’s Market Rescue ‘Trump Card’ Turn Into a ‘Bad Hand’ That Spooked Investors?

① U.S. Treasury Secretary Bessent had pledged to take decisive action to curb U.S. Treasury yields, but his measures have thus far proven insufficient; ② On Wednesday, the U.S. Treasury Department announced it would purchase up to $6 billion in long-term Treasury securities in the following day’s repurchase operations. This figure disappointed many investors who had anticipated a larger scale of intervention, while also pushing long-term U.S. Treasury yields to multi-year highs.

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Will the Federal Reserve raise interest rates next week? Two major inflation reports released over the next two days will set the tone.

① The Federal Reserve is scheduled to hold its monetary policy meeting on September 15–16, with significant uncertainty remaining regarding the central bank's actions. ② Over the next two days, two critical inflation data releases will set the tone for whether the Federal Reserve raises interest rates next week. ③ The upcoming Producer Price Index (PPI) and Consumer Price Index (CPI) data should provide clearer insights into whether U.S. inflation is reaccelerating or moderating.

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Bessent Boosted the Yen but Failed to Defend U.S. Treasuries: Is He a “Liability” for U.S. Equities?

Bessent made high-profile remarks this week to curb yen short positions, while simultaneously expanding the U.S. Treasury repurchase limit to $6 billion. As a result, the yen appreciated, but U.S. Treasuries declined—the 10-year yield hit a new high since October 2023, and the 30-year yield approached its peak in nearly two decades. Analysts point out that the combination of a stronger yen and rising U.S. Treasury yields is simultaneously impacting carry trades and equity valuations, posing a dual threat to the U.S. stock market bull run. This constitutes the "biggest risk facing the bull market."

wallstreetcn08:17

Futu Morning Brief | Apple Unveils Its Most Expensive iPhone Ever; Pro Series Price Hike Falls Short of Expectations; Bernstein Bullish on Memory Chips, Citing Room for Further Earnings Forecast Upgrades; Key Vote on Cryptocurrency Clarity Act Scheduled f

The Federal Reserve is considering reducing the number of monetary policy meetings, with some officials supporting a framework of "six decision-making sessions plus two strategic discussions"; the U.S. Cryptocurrency Clarity Act faces a key vote as banks and the crypto industry intensify lobbying efforts.

Futu News08:08

Bessent's Latest Buyback Move Leaves Investors Wanting More

Treasury Secretary Scott Bessent promised to go big to bring down bond yields. So far, his efforts still aren't big enough.

WSJ08:06

"Bessent Brings a Peashooter to a Tank Battle": U.S. Treasury Buybacks Hit Snags as 10-Year Yield Hits Three-Year High

U.S. Treasury bonds are currently facing multiple pressures, including inflation exacerbated by high oil prices, rising expectations of Federal Reserve rate hikes, elevated fiscal deficits, and large-scale corporate bond issuance. Meanwhile, the $6 billion buyback volume fell short of market expectations. Bessent had previously explicitly listed lowering long-end yields as a policy objective, but on Tuesday acknowledged that the "equilibrium" price of Treasuries could not be altered. Analysts pointed out that buybacks cannot stop yield trends driven by fundamentals, remarking that "the Treasury is bringing a pea shooter to a tank battle."

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