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Experts say US Treasury may face limits suppressing bond yields amid debt crisis

The debate centers on whether the Trump administration can keep the US 10-year yield suppressed as yields rise and US debt financing needs expand.

Reported · Written up by our desk · Economy

LiveMint Markets reports that soaring US bond yields are creating concern for global stock and gold investors, and also for the Trump administration, as they intensify the US debt crisis.

The outlet says Jefferies equity research head Chris Wood predicted that evidence for US Treasury yield suppression could lead the Treasury to act, including through options that would either suppress Treasury yields or, under extreme conditions, address yields in a way likened to Japan’s 2016 approach.

LiveMint Markets adds that experts argue the US President faces a debt crisis driven by rising bond yields and frames the next steps as potential outcomes rather than certainty, implying investors could be disappointed if suppression does not happen as expected.

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