Treasury Secretary Scott Bessent Announces Expanded Debt Buyback Program
U.S. Treasury Secretary Scott Bessent is set to announce the size of an expanded bond buyback program aimed at curbing rising long-term yields, which have reached multi-year highs and are influencing mortgage rates. The announcement comes after a surprise August 19 decision to double initial plans from $2 billion per session. Market participants expect the September 10 operation could exceed $4 billion, with some analysts suggesting it may reach as high as $10 billion. The buybacks target longer-dated securities (10-year to 20-year) and are intended to cool what Bessent has described as a 'fever' in the market. The size of this operation will be closely watched, particularly ahead of upcoming bond auctions for 10- and 30-year notes later in the week. A larger-than-expected buyback could signal deeper concern from Treasury about yield levels. Analysts are divided on what to expect but note that a significant increase would suggest the initial August announcement was reactive rather than well-planned. The program's funding remains unclear, with speculation it may involve issuing more short-term bills or reducing cash balances.
Tickers: $MS
Topics: bond yields debt buybacks market reaction Treasury Secretary Scott Bessent