Treasury Secretary Scott Bessent Challenges Traders Ahead of Bond Buyback Announcement
On September 9, Treasury Secretary Scott Bessent challenged currency traders during a public event in Texas, asserting his department's informational advantage over market participants. He referenced recent interventions to support the Japanese yen and hinted at an upcoming announcement regarding the size of U.S. Treasury bond buybacks scheduled for release on September 10. The buyback program is expected to be significantly larger than previous operations, with analysts speculating it could start around $5 billion per operation. Bessent's interventions are part of a coordinated effort with Japan’s Finance Minister Satsuki Katayama aimed at preventing Tokyo from selling U.S. Treasurys, which would drive up yields and worsen the already strained U.S. debt situation. Since the buyback announcement last month, 10-year Treasury yields have risen by about 10 basis points. However, not all market participants support Bessent’s approach. Billionaire investor Stanley Druckenmiller criticized it as a
Topics: currency intervention Treasury bond buyback yen support