Forget the Fed put. Meet the Bessent put.

• Treasury Secretary Scott Bessent is signaling increased bond buybacks to tamp down rising long-term yields, referred to as the 'Bessent put'.
• Analysts question the direct effectiveness of current buyback sizes, comparing it to a 'fire hose to an ocean,' but acknowledge its importance as a market signal.
• The stock market's continued bull run is seen as dependent on sustained double-digit earnings growth, healthy profit margins, and a stable labor market, despite bond market volatility.

The discussion revolves around Treasury Secretary Scott Bessent's strategy, dubbed the 'Bessent put,' to manage rising long-term bond yields through bond buybacks. While the direct impact of the current buyback size is debated, its signaling effect is considered significant. The broader issue of US debt and the stock market's resilience despite bond market pressures are also key themes.