In this op-ed, Steve Hanke and I assess the prospects of success for US Treasury Secretary
Bessent’s intervention in the government bond market. We cite three prior examples of
“Operation Twist” which do not have a good record. The problem is that unless the
underlying fiscal policy is changed (e.g. reducing the budget deficit), or unless monetary
policy is shifted in a helpful direction (in this case, tightening to lower the current inflation),
the government’s attempt to fix bond yields is contrary to fundamentals.