STOCKS | Westpac Says U.S. Treasury Market Has Been Treated Like a Joke

Westpac Banking Corporation said investors may stay cautious as U.S. Treasury Secretary Scott Bessent warns bond investors while U.S. President Donald Trump proposes a $1 trillion cash distribution plan. According to Sina Finance, Martin Whetton, the bank's head of financial markets strategy, said global financial markets' core collateral asset has been treated like a joke for decades. Whetton said it may be an exaggeration to say the entire system is collapsing, but he described it as unimaginable that the U.S. Treasury secretary would scold bond investors and try to intervene in the market personally, only for his boss to improvise and add another $1.3 trillion of debt. He also said oil prices are at a multi-month high, while the 30-year U.S. Treasury yield has still risen sharply amid increased long-bond buybacks, and that dollar spreads have narrowed sharply because bonds are going unsold. Whetton said buyers that are insensitive to price have already left because of regulatory policy changes and will not return. He added that a bigger question is what this means for dollar asset allocation and whether hedge ratios will rise quickly to protect retirement savings.