MFI

Scott Bessent
2026-08-20 02:49:55

Bessent escalates market intervention as Treasury buybacks become a tool to lean against rising yields

U.S. Treasury Secretary Scott Bessent has moved aggressively this year to contain borrowing costs, pairing currency intervention with Japan, signaling potential cuts to long-dated debt issuance, and then announcing that buybacks of 10- to 30-year Treasuries would be at least doubled. Bloomberg described him as the most activist Treasury secretary in financial markets in decades. Markets reacted quickly: on the day of the latest buyback move, the 10-year Treasury yield fell about 6 basis points, the 30-year yield dropped nearly 9 basis points, and the dollar index slid to a three-month low. The strategy has drawn attention because of Bessent’s background. He worked at Soros Fund Management during the 1992 sterling trade and later helped lead other macro bets, including a $1 billion yen short in 2013. Critics now argue that the same instinct for spotting pressure points is being applied to defend, rather than attack, a stressed market. Economists and market participants quoted by Bloomberg question whether intervention can do more than alter near-term pricing. Federal net interest expense reached $963 billion in the first 10 months of fiscal 2026, while the deficit hit $1.8 trillion. Several observers said buybacks and FX operations do not address the deeper drivers of long-end yields: deficits, spending, refinancing at higher rates, inflation expectations, and Federal Reserve policy.

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Bessent escalates market intervention as Treasury buybacks become a tool to lean against rising yields
SBI Funds Man
2026-07-22 06:38:44

SBI Funds Management’s India listing drew 42x demand, but a modest debut kept IPO pricing in check

SBI Funds Management listed in India on July 21 after raising about 98.13 billion rupees, roughly $1.03 billion, in an offering that was subscribed about 41.6x to 42x overall. Qualified institutional buyers were said to have subscribed about 140x. Yet the stock’s first-day gain of about 6.3% fell short of the roughly 16% grey-market premium seen before trading began. That gap is the real signal investors are parsing. The deal suggests there is still deep demand for large, high-quality Indian financial assets, but buyers are not willing to chase any valuation simply because the issuer is scarce or well known. SBI Funds Management, backed by the State Bank of India, came to market with a strong brand, stable cash flow and a clear long-term growth narrative tied to rising mutual fund penetration and SIP inflows. According to AMFI data cited in the source material, India’s mutual fund industry averaged about 84.18 trillion rupees in assets under management in June 2026, while SBI Funds Management held about 12.5 trillion rupees and roughly 15.3% market share based on quarterly average AUM through March 2026. The listing also revived debate over underwriting economics. Bloomberg and other media reports said Citigroup and JPMorgan stepped back because fees were too low, with some reports citing a roughly 0.01% fee based on anonymous sources. The broader test now shifts to whether future large IPOs, including Jio and NSE, can clear the market on similarly disciplined terms.

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SBI Funds Management’s India listing drew 42x demand, but a modest debut kept IPO pricing in check
Federal Reser
2026-07-08 21:48:15

Three Fed Governors See No Case for Central Bank Digital Currency

Fed Governors Michelle Bowman, Randal Quarles, and Christopher Waller have all expressed skepticism about the need for a U.S. central bank digital currency (CBDC), citing the safety and efficiency of the current payment system, technological risks, and potential competition with commercial banks. The Fed is preparing a report on the digital dollar.

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Three Fed Governors See No Case for Central Bank Digital Currency