Treasury Takes Control of Long-Term Interest Rates, Risks Dollar Devaluation

Jefferies strategist Christopher Wood warns that the U.S. Treasury is actively capping long-term bond yields to manage government debt costs.

This intervention creates a risk of currency devaluation, prompting a strategic shift toward gold and gold-mining assets.

The primary influence over long-term borrowing costs in the United States has moved from the Federal Reserve to the U.S. Treasury Department under Secretary Scott Bessent.

Using bond buybacks and redirecting Treasury cash accounts, policymakers are attempting to control the market, similar to historical yield control policies seen in other countries.