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David Zervos joins Treasury: Bessent hires Wall Street economist as 10-year yield hits 5.2%
David Zervos joins the US Treasury as a counselor as the 10-year Treasury yield hits 5.2%, bringing Wall Street expertise on rates and bond markets.
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Treasury Secretary Scott Bessent has hired veteran Wall Street economist David Zervos as a counselor at the US Treasury Department. Zervos is the longtime chief market strategist at Jefferies and has also worked as a CNBC contributor.
Bessent announced Zervos’ appointment on Monday in a statement first obtained by CNBC. Zervos will have a broad advisory role at the Treasury and is expected to start immediately. Zervos is joining the Treasury at a time when US government bond yields are rising sharply. The 10-year Treasury yield reached 5.2% on Friday, its highest level since 2007.
10-year Treasury yield hits 5.2%
The rise in Treasury yields is important because higher yields can increase the government's borrowing costs and affect broader financial markets. The 10-year Treasury is also a key benchmark for borrowing costs across the US economy, including mortgages and corporate debt.
Zervos is joining the department as officials face the challenge of managing Treasury markets while investors closely watch the direction of interest rates.
Zervos backs Treasury buybacks
Zervos has supported Bessent’s recent move to increase Treasury buybacks. The Treasury increased buybacks of some longer-term government debt, a move aimed at helping manage pressure in Treasury markets. Zervos has also been a strong supporter of lower interest rates. He said last year that he believed interest rates should be “much lower.”
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Zervos was considered for Fed job
Zervos was previously considered by Trump for the job of Federal Reserve chair. Trump ultimately selected Kevin Warsh for the position in January. Zervos has worked at Jefferies, the New York-based investment bank, since 2010.
He has spent much of his career working on financial markets and economic issues. Zervos holds a doctorate in economics and has worked at the Federal Reserve twice. Zervos will join the Treasury as a special government employee. He disclosed that status in an email to his clients.
Zervos to stay until April 2027
Zervos expects his Treasury assignment to end in April 2027. CNBC reported this, citing Zervos’ email to clients. His arrival comes as the Treasury faces growing pressure in the bond market. The 10-year Treasury yield reaching 5.2% has put the focus on how the government manages borrowing costs and the wider Treasury market.
Zervos’ previous support for lower interest rates and Treasury debt buybacks could make his economic views particularly relevant in his new advisory role. His appointment gives Bessent another Wall Street economist with experience in interest rates, Treasury markets and Federal Reserve policy. The details of Zervos’ views and appointment were reported by CNBC.
