Treasury Department to buy back up to $6 billion in longer-term debt, triple the normal level
- Treasury yields climbed on Wednesday despite Treasury Secretary Scott Bessent announcing the department will buy back $6 billion of longer-dated government debt, triple the usual amount. The 10-year Treasury note hit its highest level since November 2023.
- These expanded buybacks respond to reduced foreign government purchases and a national debt that recently surpassed $40 trillion, with the Treasury planning to use the $1 trillion General Account to fund the strategy.
- Bessent argued the U.S. can grow out of debt with 3% yearly growth, working with Director of the Office Management and Budget Russ Vought on a fiscal consolidation plan. He stated, "We don't have a revenue problem. We have a spending problem."
- Yields rose following market unease about operational effectiveness. Legendary investor Stanley Druckenmiller wrote that buyback operations must grow to survive tests of resolve, while Bessent dismissed the rise as driven by the "financial press" and told Breitbart he wanted things to become "more fact-based."
- Official foreign institutions now hold about 12% of outstanding U.S. Treasury securities, down from roughly 40% after the 2008 financial crisis, yet Bessent remains optimistic about the economy, citing the AI boom and new manufacturing plants.
41 Articles
41 Articles
The U.S. Treasury Department is further increasing its government bond purchase program. Secretary Scott Bessent announced today that the program will be raised to $6 billion, after he already decided last month to go from $2 billion to $4 billion.
The North American bonds of various maturity continued to see increases in the yields despite the announcement by Scott Bessent that after all the amount of buybacks of long-term bonds would be six billion dollars, the triple of the usual. Markets pointed to values in the house of eight to 10 billion.
(New York = Yonhap News) Correspondent Kim Yeon-sook = The U.S. Treasury Department announced on the 9th (local time) that it is increasing the size of its long-term government bond buybacks to a maximum of $6 billion.
Treasury triples buyback of longer-term debt to $6 billion
The Treasury Department announced it will buy back $6 billion in longer-term debt in an effort to stabilize bond markets, which have been turbulent as the national debt recently surpassed $40 trillion. The Treasury announced the buyback operation on Wednesday, with officials saying it will include the purchase of 10-year and 20-year Treasury bonds. Treasury […]
Treasury will buy more government bonds than previously announced. The market remains ‘underwhelmed.’
The Treasury Department said it would buy back $6 billion in U.S. government debt, exceeding the amount previously announced in its effort to contain bond yields.
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