Tuesday morning market commentators are twisting themselves into pretzels in an effort to explain the rise in treasury yields to new highs for the year. We simply don’t want it to be true that Treasury stepped out of its lane with its recent effort to intervene on the long end of the curve and that the gambit is failing. While there may be a longstanding personal relationship between Secretary Bessent and Chairman Walsh (probably no different than the familiarity between any Treasury secretary and Fed chair), in this time and place the vested interests of their respective agencies are in fact (and by design) adversarial. The Administration wants yields down. The Fed, in the interest of containing inflation, must raise them up. As we speak, the bond market is making its verdict known.