Scotty Doesn't Know

Rising U.S. Treasury bond yields reflect a complex intersection of strong economic growth, massive borrowing by hyperscalers for data center infrastructure, and geopolitical instability stemming from the war in Iran. Treasury Secretary Scott Bessant’s recent bond buyback intervention attempts to suppress these yields, yet these technical measures fail to address the underlying market anxiety regarding the administration’s incoherent foreign policy and fiscal trajectory. While AI-driven capital expenditure currently bolsters GDP, the rate of growth is decelerating, and emerging populist opposition to data center construction threatens to undermine this essential economic engine. Ultimately, the bond market serves as a critical constraint on government policy, signaling that technical interventions cannot mask the lack of a coherent long-term strategy for managing debt, deficits, and the realities of a multipolar global order.