Bessent Says US Bond Buybacks Could Be Scaled Up, Single Operations May Exceed $4 Billion; Economic War on Iran May Replace Military Action

Bessent said the Treasury has a powerful toolkit, long-end yields are not reflecting fundamentals, liquidity in 30-year Treasuries is especially insufficient, and the scale of buybacks will depend on conditions; AI investment has made companies "nearly insensitive" to yields when issuing debt; a press conference will be held next Monday to discuss action against Iran, with the US set to impose "the most severe" sanctions on Iran in history, and while applying economic pressure, the US may not necessarily need to restart large-scale military action against Iran. He reiterated the strong dollar policy, saying the dollar is returning to levels seen two months ago, and did not understand Thursday's oil price rise.