Bessent Says Bond Buyback Could Top $4 Billion in Yield Signal

Bessent also addressed the administration's approach to Iran, saying he will hold a press conference on Monday to discuss actions. He described the policy as "maximum economic pressure" and said it "means likely not a kinetic restart." Oil markets have misinterpreted the strategy, he argued. "There will be coordinated economic isolation," Bessent said. "If countries insist on doing business with Iran, the US will enforce actions against them." He promised the "toughest sanctions in history" and said the goal is to "collapse this regime."

When asked whether the actions will include China, Bessent said "some conversations better to be private," but added that he is confident everyone, including China, wants to see the Strait of Hormuz reopened. Oil prices had edged higher earlier in the session on concerns about supply disruptions, but Bessent's comments suggested the focus is on economic isolation rather than military conflict.

The dollar index, which had slipped earlier in the week on softer US data, recovered some ground after Bessent's remarks. The 10-year yield rose about 3 basis points on the day, with traders parsing the mix of buyback signalling and fiscal consolidation promises. Bessent's assertion that the deficit has likely peaked could cap the recent upward drift in term premiums, though investors will watch for concrete fiscal measures.

Bessent said the administration will "probably announce increased focus on fiscal consolidation." He did not provide a timeline or specific targets. The Treasury's quarterly refunding announcement in November will offer the next formal update on borrowing plans.