Bessent’s Buyback Strategy Raises Prospect of a Mechanically Driven CTA Short Squeeze at 5.34%
The 30-year Treasury yield reached 5.34% on August 19, its highest level in 19 years. Market participants are debating whether Treasury Secretary Scott Bessent’s decision to double long-end buybacks is an intentional signal aimed at engineering a mechanical short-covering event among commodity trading advisors (CTAs), who remain heavily short in Tr…