Can Bessent, in 'Soros Style,' Save U.S. Treasuries? From Currency to Rates Intervention, Can He Beat the Market?

Bessent, a "Soros disciple" who once assisted Soros in shorting the British pound and the Japanese yen and is known for "finding cracks," is now using the same market instincts to shift from offense to defense, attempting to cap Treasury yields. This year, he has moved repeatedly—coordinating with Japan to intervene on the yen, hinting at cuts to long-dated bond issuance, and announcing a doubling in the scale of long-dated bond buybacks—earning the label of "the most interventionist Treasury Secretary in decades." Yet skeptics argue that intervention cannot resolve the fundamental issue of fiscal deficits.