US Treasury Secretary Scott Bessent's August decision to unexpectedly expand the repurchase scale of old securities caught some Wall Street traders by surprise. They are now preparing for the Treasury Department's possible more proactive intervention measures. As the Ministry of Finance prepares to release its latest debt management plan in November, the market may get key clues this Friday. What Bezent called “Treasury Distortion” is a response to a sharp rise in US Treasury yields. The rise in borrowing costs has always been a major pain point for the Trump administration. The administration previously promised to reduce financing costs, and this operation did initially have some effect. However, Bezent's intervention in this way actually broke the “regular and predictable” principle that the US Treasury has been pursuing for decades, that is, to achieve long-term minimum financing costs through stable and predictable debt issuance operations.

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