Persistent "Intimidation" of Treasury Bears! Is the "Bessent Put" Starting to Take Effect?

Treasury Secretary Bessent's "doubling" of the long-dated Treasury buyback program is reshaping the rates market: the 30-year swap spread has narrowed to a February low, options markets show a notable bullish tilt, and traders are wary of shorting the long end. Citigroup strategists define this as the "Bessent put" beginning to take effect, but Pimco warns that structural fiscal deficits have no short-term solution, while Druckenmiller bluntly calls the move a "mistake."