Downgraded by the Minister of Finance of their USAScott Betset, the recent sale on the market bonderrejecting the speculations that foreign nations are unloaded by US government bonds, while pointing out that his ministry has tools to deal with disorders if needed.
“I don’t think there is dumping” by foreign investors, Besed said in an interview yesterday (14.4.25) on Bloomberg television, while visiting Buenos Aires in Argentina. He pointed out what he said was increased foreign demand for auctions for 10 years and 30 years of government securities last week.
Bessed reiterated his interpretation that fall is mainly a product of deletion. “I have no proof that the states are behind the fall,” he said.
“We are far away” by having to take action, he said. But “we have a great toolbox that we can develop” if that happens. This toolbox includes the Ministry’s old -fashioned repurchase program, Bessent said. “We could increase the repatriation if we wanted.”
The Ministry of Finance began last year the first regular repurchase program from 2000-02, with the aim of improving liquidity in older titles that are rarely traded than the younger, so-called on-the-run titles. In previous episodes of official market intervention, the US Federal Bank was the main perpetrator, buying large quantities of debt in the secondary market.
US government bonds fell the largest weekly decline since 2001 last week, along with the dollar fall – which some market participants have emphasized as a sign of reduced international confidence in US assets.
Asked if, in the last weekly meeting he had with Fed President Jerome Powell, concerns about the public market were discussed, Mr Besed said: “Specifically, we discussed some kind of glass breaking? I think we are far from it.”
Pressing about whether Powell was worried, he said that “I think we would have heard from the Fed president” if that were the case.
He also said that the timetable for the interview of candidates who will succeed Powell, whose term as president expires in May of the following year, is “at some point in the fall”. Bessed reiterated his respect for the US Central Bank’s independence on monetary policy decisions, saying it was a “box of jewelry to be maintained”. As far as regulators are concerned, there may be a greater debate, since the Fed is one of the many bank regulators, he said.
Former Hedge Fund manager said that a lesson from his career was “not to look at what’s going on in a week”. The history of transactions is “the scar that stays you,” he said, recalling Long Term Capital Management’s bankruptcy in 1998, which, he said, had “nothing to do with anything” except that investors were acting with excessive leverage.
As far as commercial conversations are concerned, there will be an advantage of the first player, he said. “Usually, the first to make the deal gets the best deal. “ He also said that there may not be a real commercial “document” until the end of the 90-day cessation period announced by Trump on commercial partners except China last week, but there may be a “agreement on the principle” that will allow the US and the Nation-Ethiot.
The head of the Treasury visited Argentina to show his support in the country after receiving a new round of funding from the IMF last week, and met earlier with President Javier Miley, a well -known Trump supporter.