The bond market sent a signal to Treasury Secretary Bezent in recent days that don't want to sweep $40 trillion of US Treasury bonds under the carpet and pretend it's okay. Bezent announced plans to increase the scale of long-term treasury bond repurchases this fall, promised to use the Treasury Department's huge “toolbox” to support the market, and talked about introducing new measures soon to curb the growing burden of US debt. John Arnold, a former Enron energy trader, billionaire, and founder of the charity Arnold Ventures, said that in the end, the turmoil in the bond market this summer may just be “another episode that quickly calms down,” but the bigger concern is that the lack of change in the US financial situation will continue until it eventually triggers a crisis. Brandi Winn Global Portfolio Manager Tracey Chan said she was very nervous because Bezent failed to curb long-term Treasury yields. The performance of the bond market shows that the bond volunteers still don't trust him. Bezent needs to do more to convince investors that the Trump administration is taking US fiscal issues seriously, but talking about increasing revenue through tax increases or austerity before the November midterm elections will be unpopular.

The bond market sent a signal to Treasury Secretary Bezent in recent days that don't want to sweep $40 trillion of US Treasury bonds under the carpet and pretend it's okay. Bezent announced plans to increase the scale of long-term treasury bond repurchases this fall, promised to use the Treasury Department's huge “toolbox” to support the market, and talked about introducing new measures soon to curb the growing burden of US debt. John Arnold, a former Enron energy trader, billionaire, and founder of the charity Arnold Ventures, said that in the end, the turmoil in the bond market this summer may just be “another episode that quickly calms down,” but the bigger concern is that the lack of change in the US financial situation will continue until it eventually triggers a crisis. Brandi Winn Global Portfolio Manager Tracey Chan said she was very nervous because Bezent failed to curb long-term Treasury yields. The performance of the bond market shows that the bond volunteers still don't trust him. Bezent needs to do more to convince investors that the Trump administration is taking US fiscal issues seriously, but talking about increasing revenue through tax increases or austerity before the November midterm elections will be unpopular.