What's Behind the Big Surge in US Government Bond Yields

Odd Lots speaks with Stanford Professor Darrell Duffie about the recent surge in global bond yields, with the 30-year US Treasury touching 5%. They discuss what's driving yields higher, potential policy responses including Treasury Secretary Scott Bessent's surprise increase of the department's bond buyback program and Fed Chair Kevin Warsh's hawkish Jackson Hole remarks. Duffie, who presented a paper at Jackson Hole in 2023 on fixing the US Treasury market, provides expert insight into the current market dynamics and the challenge of shrinking the Fed's balance sheet.