How Scott Bessent is getting ready to slam Wall Street’s ‘bond vigilantes’: ‘Fear of God’

Treasury Secretary Scott Bessent is determined to put the “fear of God” into the so-called “bond vigilantes” who have been dumping US Treasurys and sending interest rates soaring, according to a private sector economist with knowledge of his thinking. Bessent is particularly worried that institutional investors will continue to sell long-dated Treasury bonds in a trade that will send prices lower – and yields on the all-important 10-year bond surging to 5%, according to Wall Street executives who deal with him regularly. That, in turn, could snuff out economic growth as the midterm elections approach since it’s the 10-year Treasury...