Bessent says Treasury buyback operation could be more than $4 billion
Treasury Secretary Scott Bessent indicated that the U.S. government may increase its debt buyback operations beyond the previously announced $4 billion. The move aims to stabilize the market for longer-dated securities and address poor liquidity.
Why it matters
Government intervention in the bond market is a significant tool for managing interest rates and maintaining financial stability.
Treasury Secretary Scott Bessent told CNBC on Thursday that an accelerated buyback of government debt could be higher than the announced $4 billion.
In a live interview, Bessent said his department is going "make a market" in the longer-dated securities where yields have been surging lately. Treasury announced Wednesday that it would be doubling its scheduled $2 billion in buybacks of longer-dated government debt, sending yields sharply lower.
"We're going to increase the size of the buyback," he said. "I would note that it could be more than the 4 billion per issue."
The remarks caused a brief easing in yields, which had largely reversed the decline following Wednesday's announcement. The 30-year bond most recently was trading around 5.235%. The so-called long bond recently had been trading at levels not seen since prior to the global financial crisis in 2008.
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