Treasury Secretary Scott Bessent’s surprise plan to tamp down US borrowing costs by expanding bond buybacks may have sparked fierce debate about its ultimate effectiveness, but key market metrics and positioning show that it’s having an impact.

Since Bessent’s announcement last week, Treasuries have outperformed equivalent-maturity swaps, narrowing the 30-year spread between the two to the smallest since February. Benchmark US yields have also drifted lower after initially see-sawing in the wake of the government’s plan to “at least double” its buybacks of longer-dated bonds.

The move, dubbed the “Bessent Put,” has triggered a short squeeze in long bonds, forcing traders to cover positions. This dynamic has supported prices and compressed yields, even as analysts question the long-term sustainability of the policy.

Market participants are now watching whether the Treasury will follow through with additional buyback expansions, which would further influence rate dynamics. The initial impact is clear: the intervention has shifted positioning and brought down borrowing costs, at least for now.