Treasury Secretary Scott Bessent appointed Jefferies strategist David Zervos as a department counselor to advise the agency on rising bond yields.

A ‘Wall Street Geek’ Joins the Treasury

According to CNBC, Zervos, who called himself a “Wall Street geek” in a brief interview, will serve in a broad advisory capacity and is expected to begin immediately. He assumes the role as a special government employee, a status that bypasses certain divestiture requirements but restricts his term, which he expects to end in April 2027.

The position does not require Senate confirmation and fills a vacancy left by Wall Street economist Joseph Lavorgna in March. Zervos expressed enthusiasm for his third stint in government and praised Bessent’s leadership.

Bessent “has done an incredible job in this administration at guiding the economy through a lot of tumultuous periods,” Zervos told CNBC. “Whether it’s trade, whether it’s war, he’s stepped up.”

Navigating Rising Yields and Debt Strategy

The hire arrives as the Treasury intervenes in markets amid rising interest rates. The 10-year Treasury hit 5.2% on Friday, currently at 5.25%, driven by inflation concerns, the Iran war, and capital competition from artificial intelligence infrastructure.

Zervos has publicly backed Bessent’s recent moves to increase buybacks of long-term Treasury debt. Defending the strategy against Wall Street critics last month, Zervos stated, “I don’t see how you could fight this when the firepower and the cards are all sitting in the Treasury Department.”

Push for Lower Interest Rates

Zervos, who holds a doctorate in economics, has worked at Jefferies since 2010. He previously served two stints at the Federal Reserve and was considered by President Donald Trump to run the central bank before Kevin Warsh was selected in January.

Zervos has advocated for “much lower” interest rates and suggested Warsh can facilitate cuts by reducing the Fed’s balance sheet. His arrival bolsters Treasury ranks following a wave of departures, including seven of the department’s 16 Senate-confirmed appointees.

How Have Stocks and Bonds Performed in 2026?

At the last check, the 30-year Treasury bond yielded 5.56%, the 10-year Treasury bond was at 5.25%, and the two-year bond was at 4.95%.

iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), which tracks an index of long-term U.S. Treasury bonds with remaining maturities of 20 years or more, closed Monday 0.88% lower. It is down 10.52% year-to-date, 11.56% over the year and 5.14% over the last one month.

The S&P 500 index has advanced 12.24% year-to-date. Similarly, the Nasdaq Composite index has gained 15.4%, and the Dow Jones is up 7.11% during this period.

On Friday, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq-100, respectively, closed lower. SPY fell 0.74% to $765.61, while QQQ dropped 1.07% to $736.53. Meanwhile, the Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), ended 0.67% lower at $514.02.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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