Potential Treasury Short Squeeze Driven by Bessent Bond Buyback Strategy

Treasury yields have surged to 5.34% on the 30-year, creating a technical setup where Scott Bessent's proposed bond buyback program could force a massive short-covering event among CTA funds. Goldman Sachs estimates this could trigger $150 million in DV01 buying, potentially reversing the yield trend and benefiting long-duration assets. The outcome remains contingent on the scale of buyback implementation versus persistent inflationary pressures.