Tuesday, March 4, 2025

How Janet Yellen intentionally set a $9 trillion trap for Scott Bessent

 There are $9.2 trillion of Treasury bills, notes, and bonds expiring that must be refinanced in 2025.  Until 2021, the long term interest rates were under 2%.  Yellen could have sold more bonds at the long end of the curve, but she choose to sell them short-term.  Now this must all be refinanced at 4.25% (or higher) interest.

Read: https://confoundedinterest.net/2025/03/02/yellens-folly-treasury-secretary-bessent-faces-refinancing-of-9-trillion-in-treasury-debt-in-2025-thanks-biden-pelosi-schumer/

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