US Treasury Secretary Scott Bessent Intervenes in USD/JPY and Long-End Treasuries; Goldman Sachs Says Authorities Will Prioritize Currency Depreciation Over Bond Market Collapse
U.S. Treasury Secretary Scott Bessent intervened in both the USD/JPY exchange rate and the long-end of the U.S. Treasury market in August. Through measures such as "Operation Twist," a clear signal was sent to the market: authorities would rather choose currency depreciation than allow the bond market to collapse. Goldman Sachs partner Mark Wilson characterized this as "the August sequence of events with severe consequences," considering this intervention the most important policy node of the month. He believes it indicates clearer policy coordination between the Federal Reserve and the Treasury, aiming to support nominal growth by all means. The market reacted swiftly, bringing the investment logic of "store of value" assets such as gold, Bitcoin, and base metals back into focus.
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