\u201cThere was, like, this fever that was building,\u201d in the bond markets, Bessent said Tuesday, appearing to suggest that yields had risen largely because of the \u201cfinancial press.\u201d <\/p>\n
\u201cThey get a hold of a narrative, and I wanted things to become more fact-based,\u201d he told Breitbart.<\/a><\/p>\n \u201cMy job is to try to push things back towards equilibrium.\u201d<\/p>\n But it is this outlook from Bessent, that the government should take actions to keep yields down, which investors see as a potential trap for the Treasury Department.<\/p>\n \u201cOnce markets believe Treasury is defending a price, every rise in yields becomes a test of official resolve, and the operations must grow to survive the tests,\u201d wrote legendary investor Stanley Druckenmiller in a widely read Wall Street Journal op-ed in August. <\/a><\/p>\n Peter Boockvar, chief investment officer at One Point BFG Wealth, referred to that op-ed on Wednesday, writing, \u201cYou can be sure the market will continue to \u2018test\u2019 the \u2018official resolve\u2019 if they feel the fundamentals warrant.\u201d<\/p>\n Many investors and economists believe the fundamentals do warrant it. <\/p>\n Just weeks ago, the U.S. national debt surpassed $40 trillion, a level never seen before. <\/a>The path to that massive number had been visible for years, but it nonetheless drew attention to America\u2019s reliance on the rest of the world to buy its debt. <\/p>\n \u201cSovereign debt around the world has exploded and we\u2019re all competing for the same pool\u201d of investors, wrote Diane Swonk, chief economist at KPMG recently. <\/p>\n