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Confluence flags shifting bond-market focus after Bessent intervention
The piece points to a US Treasury plan to buy back up to $6 billion in long-dated securities, larger than an earlier $2 billion operation.
Confluence Investment Management, in an asset allocation update for ETF Trends, said its products are managed using a top down, or macro, approach, and used the latest bond-market developments to frame current risks for investors.
The outlet highlighted that Treasury Secretary Scott Bessent has intervened in the bond market to help calm what he described as a “fever,” amid concerns inside the administration that investor fear has outweighed fundamentals in bond valuations.
ETF Trends also noted that the US Treasury Department announced plans earlier this month to buy back up to $6 billion in long-dated securities, versus a $2 billion operation communicated on August 19, as part of efforts to dampen volatility.
Still, the update said Treasury’s more active role has tested investors’ willingness to take Bessent’s guidance at face value, while the department works to manage a growing fiscal debt burden.