US Treasury Secretary Scott Bessent has repeatedly warned investors that he will cause these people to suffer significant losses. He insisted that investors are making serious mistakes whether it is driving up oil prices, depressing the yen exchange rate, or most importantly, raising US Treasury yields. Because he stands on the counter side of this deal, he holds core information on government policy planning that investors cannot obtain. This former hedge fund trader always likes to call this information asymmetry in game theory terms. In the past three weeks alone, he has mentioned this concept in public at least four times, including this Tuesday when he said to forex traders: “If you want to gamble with me, feel free to come.” Traders have already begun to do this — at least in the bond and crude oil markets; the situation has not yet occurred in the yen market, and the US has taken urgent steps to assist the Japanese authorities. Since Bezent began speaking out about the two major markets of crude oil and bonds, these two market trends, which are critical to the livelihood of American households before the midterm elections, have all gone against his expectations. Benchmark crude oil prices topped $100 per barrel, boosting the retail price of gasoline at gas stations. On Wednesday, he launched the first additional bond repurchase operation with the intention of lowering the 10-year US bond benchmark yield, but US bond yields instead rose sharply, continuing the sell-off over the past two weeks, hitting a three-year high of 4.85% in one fell swoop.

US Treasury Secretary Scott Bessent has repeatedly warned investors that he will cause these people to suffer significant losses. He insisted that investors are making serious mistakes whether it is driving up oil prices, depressing the yen exchange rate, or most importantly, raising US Treasury yields. Because he stands on the counter side of this deal, he has core information on government policy planning that investors cannot obtain. This former hedge fund trader always likes to call this information asymmetry in game theory terms. In the past three weeks alone, he has mentioned this concept in public at least four times, including this Tuesday when he said to forex traders: “If you want to gamble with me, feel free to come.” Traders have already begun to do this — at least in the bond and crude oil markets; the situation has not yet occurred in the yen market, and the US has taken urgent steps to assist the Japanese authorities. Since Bezent began speaking out about the two major markets of crude oil and bonds, these two market trends, which are critical to the livelihood of American households before the midterm elections, have all gone against his expectations. Benchmark crude oil prices topped $100 per barrel, boosting the retail price of gasoline at gas stations. On Wednesday, he launched the first additional bond repurchase operation with the intention of lowering the 10-year US bond benchmark yield, but US bond yields instead rose sharply, continuing the sell-off over the past two weeks, hitting a three-year high of 4.85% in one fell swoop.