Bessent Seeks to Cap US Yields Ahead of Midterm Elections

US Treasury Secretary Scott Bessent has been making moves to cap long-term US yields, according to analysts.

Bessent's efforts include backing joint yen-support intervention with Japan and hinting at cuts in long-term bond issuance.

This is seen as a concerted effort to prevent long-term interest rates from rising further, particularly ahead of the November midterm elections.

The 30-year Treasury yield surged to 5.28 percent on July 31, its highest level since 2007, pushing up mortgage costs and corporate borrowing expenses.

Some market strategists believe Bessent's recent public defense of Federal Reserve Chair Kevin Warsh is also part of this effort.

However, not everyone agrees that Treasury's measures can hold long-term yields in check.