Bessent argues that elevated long-term Treasury yields serve as the only remaining check on US fiscal irresponsibility.
“The bottom line for investors is that interest rates are going to stay higher for longer. Or, as Druckenmiller puts it, the long-term Treasury yield is the only fiscal disciplinarian the US has left.”
The long Treasury yield is the only remaining mechanism that enforces fiscal discipline on the United States government.
“The long-term Treasury yield is the most important price in the world. It is also the only fiscal disciplinarian the U.S. has left. ”