Bloomberg Daybreak: Asia Edition Treasury Secretary Bessent Plays Down Foreign Bond Dumping Claim
9 snips
Apr 15, 2025 
Ross Mayfield, Investment Strategist at Baird, shares keen insights on the bond market's recent turbulence. He discusses Treasury Secretary Scott Bessent’s dismissal of claims regarding foreign nations selling off US Treasuries, particularly focusing on China’s strategic approach. The conversation also highlights how President Trump's trade policies have stirred market volatility, prompting a rally on Wall Street. Mayfield emphasizes the significance of adapting investment strategies in uncertain economic climates and the need for diversification amidst global challenges.
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Asian Treasury Selloff Speculation
- Sharp spikes in 10-year Treasury yields during Asian hours sparked speculation about Asian central banks selling.
- Japan, the largest foreign creditor, denied weaponizing its Treasury holdings, shifting focus to China.
Bessent Downplays Dumping Claim
- Treasury Secretary Scott Bessent denied foreign dumping of U.S. Treasuries, citing increased foreign competition in recent auctions.
- He attributed market volatility to leveraged trading and real money selling, referencing the 1998 Long-Term Capital Management debacle.
Data Discrepancy
- Shuli Ren questions Bessent's reliance on Treasury data from U.S. custodian banks.
- She points out that China's Treasury holdings in European banks wouldn't be reflected in this data.