FX Files – Vigilantes v Bessent

FICC Strategy Reports

The greenback continues to weaken, gaining downside momentum after the surprise US Treasury announcement earlier this week to ‘at least double’ the purchases of its long term debt. In his CNBC interview yesterday, Bessent re-emphasized that buybacks ‘could be more than the $4 billion’ with the administration having a ‘big toolkit’ available for taming the bond vigilantes. Bessent also stated that there will be an announcement ‘at the end of this week, beginning of next week, an increased focus on fiscal consolidation’.

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