Surging bond yields reveals Trump’s dilemma


US President Donald Trump and Treasury Secretary Scott Bessent. — Reuters

THE recent spike in long-dated US bond yields to historic highs has exposed a conundrum at the heart of the Trump administration’s view on US interest rates that won’t be resolved easily or painlessly.

In its simplest framing, President Donald Trump is obsessed with the Federal Reserve (Fed) lowering its policy rate, while Treasury secretary Scott Bessent’s long-standing focus is the 10-year Treasury yield.

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