Bloomberg Surveillance · Tuesday, September 15, 2026
Dominic Constam discussed Treasury Secretary Besson's efforts to lower long-term rates, noting that these efforts have not been entirely successful. Constam suggested that Besson's strategy, which might involve cutting supply or increasing buybacks, was undermined by the market's reaction and the Fed's own policy direction.
“It's obviously, I mean, the idea had been, had Walsh not been so apparently committed to raising rates, then the long end was obviously going to have trouble stabilizing in this elevated inflation world.”
“So, the idea for Besson was to basically try and sort of lean against the moves higher in rates by doing something. He could cut supply. He could increase buybacks. He obviously signaled this sort of potentially aggressive buyback strategy.”
“The problem, if you like, was that although this number was quite large, almost $ 6. Billion in the last buyback. They didn't really buy through the market.”