Bond investors call Bessent’s bluff

Treasury Secretary Scott Bessent dared investors to bet against him after the government bought back billions of long-term bonds. On Monday, they did. They sold long-term bonds instead of buying them, which drove prices down and yields up. The 10-year Treasury yield jumped past 5 percent, its highest level since 2007. Bessent’s plan was meant to lower borrowing costs. It backfired. One third of publicly held debt comes due within a year, and another third within five years. If the 10-year yield stays this high, annual interest payments on the national debt could reach $1.2 trillion ($3,700 per person) next year.