USD firms as long-end Treasury yields rebound, testing the "Bessent put"

US long-term Treasury yields have bounced back through the second half of the week, erasing much of the decline triggered by the Treasury's announcement that its long-dated bond buyback could exceed $4 billion. Treasury Secretary Bessent's guidance initially compressed the long end and pressured the dollar, but the rebound in yields is now testing the credibility of what markets have dubbed the "Bessent put" — the assumption of an implicit official backstop against a disorderly rise in borrowing costs. The dynamic mirrors previous episodes where verbal intervention delivered only a temporary yield reprieve before market forces reasserted themselves. For FX, the yield rebound is broadly dollar-supportive, particularly against low-yielding currencies, keeping USD/JPY biased higher while capping EUR/USD upside. Traders should watch whether long-end yields reclaim their pre-announcement highs, which would signal the market is willing to challenge the Treasury's resolve and could trigger fresh dollar strength. Conversely, follow-through action or firmer verbal guidance from the Treasury would likely cap yields and renew downward pressure on the greenback.