The bond market has the last word on Bessent's buyback

Bessent's buyback meets the bond market

The week's central event was the US Treasury's attempt to hold down borrowing costs, and the market's refusal to co-operate. The Wall Street Journal reported on Friday that bond yields rose despite Treasury efforts to curb them, having earlier described stocks and bonds sliding as investors brushed off the buyback plans. The BBC put it plainly: US borrowing costs rose again after attempts to ease rates proved short-lived.

CNBC's reading was that Scott Bessent's gambit, intended to calm markets, was instead stirring inflation worries, and a companion piece set out what else the Treasury secretary might try now that the first efforts have not worked. The Journal went further in its own account, headlining the episode as the wild week when Bessent was schooled by the bond market. Not every verdict ran the same way. A Journal opinion piece argued that the bond "chaos" is a sign Kevin Warsh's plan is working.

The backdrop was a debt figure that keeps climbing. This is Money reported borrowing costs spiking as the US national debt reached $40 trillion, with fresh jitters on bond markets despite the intervention from President Trump. From Hong Kong, the South China Morning Post noted among its numbers moving markets that China has cut its holdings of US Treasuries.

Equities took the strain. Stocks slumped on Thursday as bond yields rose alongside crude prices, and the S&P 500 ended Friday with a weekly loss. London went the other way, City A.M. tracking a FTSE 100 that climbed as markets digested the buyback. The clearest single move was in crypto: bitcoin jumped above $75,000 for the first time since early June, which This is Money attributed to Bessent's intervention in the bond markets.

Bids, extensions and the queue to list

Italian banking consolidation moved again. Monte dei Paschi detailed a bid for Banco BPM and Banca Generali, a combination Euronews described as a takeover shield that would forge an €80 billion Italian bank.

In London the pace was slower. Spire Healthcare extended its private equity takeover deadline for a fifth time, according to This is Money. The same publication's small cap column argued that the numbers now prove AIM is being bought out from under domestic investors. Sky News reported a £140 million merger between the NHS patient data groups Arcturis and Akrivia.

The listing pipeline offered contrasts. Anthropic is said to be aiming to top SpaceX in a record-breaking flotation, with This is Money examining whether UK investors will be able to take part. Shein's cut-price listing, by the same account, has been delayed as the fast fashion group reels from Trump's tax blitz on small parcels.

Hong Kong spent the week making itself easier to use. The stock exchange extended its listing application window to twelve months. The Hang Seng Index added a major Chinese chipmaker as its pivot towards technology continued, with the possibility of further tech entrants at the next review. Ping An is eyeing Hong Kong exchange-traded funds after Beijing gave the green light to cross-border investment, and the South China Morning Post examined why a Hong Kong fund tracking SK Hynix stayed at full leverage through the volatility. Elsewhere in the same market summary, Evergrande was reported to face a fine of US$1.31 billion.

Savers, pensions and payouts

NS&I has raised its premium bonds prize fund rate again, which the Guardian reported as improving the chance of a win for holders. It is the second increase referenced in the paper's account.

Sky News looked at pension consolidation and set out why bringing old pots together is sometimes a mistake. From Lisbon, Euronews reported a new study warning that Portugal's pension surplus is an illusion.

Two sets of company accounts drew attention for what the owners took out. Jamie and Jools Oliver paid themselves a £1.5 million dividend even as profits at the business almost halved, according to the Guardian, whose report also touched on the cookery school. At Specsavers, This is Money reported that the husband and wife team behind the optician are in line for a £12 million payout after a surge in profits.