All articles tagged with #bond buybacks
Treasury Secretary Scott Bessent has pressed to lower long-term bond yields via buybacks, but traders have bet against him and yields are rising, suggesting his strategy is faltering and the Treasury may be running out of tools.
The Treasury will conduct a one-day buyback of up to $6 billion of longer-term debt, triple the normal size, with future operations at least $4 billion, targeting 10- and 20-year notes to support liquidity and potentially cap rising yields; yields rose after the announcement.
Treasury officials say the near-$1 trillion General Account (TGA) could be used to back larger long‑term bond buybacks, potentially influencing yields; the plan would rely on discretionary cash and selling short-term bills, though specifics and market impact remain uncertain amid skepticism about the operation’s effectiveness.
The dollar eased as the U.S. Treasury signaled expanded bond-buybacks to dampen yields, prompting questions about potential implications for the currency. The euro rose to about $1.1703 and the pound held near its highs, while the yen firmed after inflation data, as traders await the Federal Reserve’s Jackson Hole symposium for new guidance.