According to Reuters and Fox News live footage, on August 21 local time, U.S. President Donald Trump hinted during his response to reporters about Treasury Secretary Yellen's attempt to lower long-term bond yields that he might use the military to 'intervene' in the bond market.
That afternoon, Trump answered questions on the tarmac before boarding Air Force One.
A reporter asked him whether he had instructed Besenat to intervene in the bond market, and whether this was his idea.
"No," Trump answered, "completely no. He (Benson) is a very capable person. He wants to do so. He's good at this. He has a good feel for bonds and interest rates."
The journalist mentioned that after the intervention ended, “the yield rate increased again.”
Reporter asked, "Have you discussed another form of intervention with him? Would he actually do such a thing?"
"We have many ways of intervening, and this is just one of them," Trump's subsequent words were confusing. "The ultimate means of intervention is our military. If it must be used, then we will do so."
On the 21st, Trump answered reporters' questions. Video screenshot
Currently, the yield on US long-term government bonds is at a historical high. Data shows that the yield on 30-year bonds reached a new high of 5.33% on August 18, marking the highest level in 19 years.
The US Treasury Department has recently increased its intervention in the long-term government bond market. Bessen said on the 20th that the scale of long-term government bond repurchases might be further expanded. Previously, the Treasury announced that the repurchasing scale would be “at least doubled.” This is seen as a government measure to “save the market” from the persistent high yields of long-term bonds.
The yield on long-term US bonds declined later on, but it rebounded significantly on the 20th, with the yield on 30-year Treasury bonds reaching close to 5.30%.
