Benson is accused of giving up on reversing the trend and delaying time to gain political chips for the midterm elections under the hopeless deficit reduction BlockBeats news, on August 25, Fox business reporter Charlie Gasparino said that Wall Street executives who knew that Besant's real goal was to "keep bond bears in awe". Through the repurchase of treasury bond bonds, the restructuring of bond issuance, and even the cancellation of 20-year bonds and other ultra long end varieties, people pushed up bond prices, triggered CTA trend funds to make large-scale passive replenishment, and pushed the 10-year yield to around 4.3% before the mid-term elections. The latest data shows that the short positions of CTA and trend tracking strategy funds in the global bond market are approaching historical highs, measured at approximately $155 million in DV01. If the price rises by 2 standard deviations within a month, the total size of replenishment and repurchase can reach $150 million in DV01, and this size will set a historical record. Besent comes from a background as a trader, and in the reality of hopeless deficit reduction, the core of his strategy is not to reverse the trend of yield, but to buy time, hoping to exert precise pressure on market technical weaknesses and create a narrative of interest rate decline in the pre election window. However, Beisen's intervention has had limited effectiveness so far, with US bond yields continuing to rise until the Treasury Department revealed that it would use up to $954 billion in TGA funds as support, causing yields to barely fall slightly, but the effect is still short-lived. Critics point out that the scale of buybacks is a drop in the bucket compared to large deficits, total debt, and high inflation. Deeper friction occurs between the Ministry of Finance and the Federal Reserve. Bessen's intervention has deeply displeased Federal Reserve Chairman Walsh and significantly cooled his willingness to reduce the Fed's balance sheet. Market observers believe that this has actually led to some kind of binding between the Treasury Department and the Fed's balance sheet. Analysis suggests that Besent's pre election actions may indeed trigger self reinforcing bearish correction feedback, pushing the 10-year yield towards around 4.3%. However, after the midterm elections, the upward pressure on structural returns and the gravity of stock market valuations may return in a more intense manner. [Original link]