U.S. Treasury Secretary Bessent said on Aug. 25 that Treasury buybacks have not yet begun, pushing back on expectations that the department was ready to step up support for the long end of the bond market. Speaking at an "Economic D-Day" press conference, Bessent said the next operation is scheduled for Sept. 9 and noted that "we haven't bought a single bond yet" when asked whether buybacks could be expanded further.
The remarks came after Bessent had previously announced a larger long-dated Treasury buyback plan following a surge in 30-year Treasury yields to their highest level since 2007. Under the schedule already outlined, the minimum size of each buyback operation will rise from $2 billion to $4 billion between Sept. 9 and Nov. 4.
His latest comments were seen as more restrained than earlier hints that purchases could exceed the newly set minimum. Bessent also addressed speculation that the Treasury might cut long-term bond issuance, saying issuance would proceed under the regular schedule. He suggested that any details on auction sizing would not be known until the next quarter's quarterly refunding announcement.
U.S. Treasury Secretary Bessent did not provide any fresh signal on Treasury market operations at an "Economic D-Day" press conference on Aug. 25.
Earlier, after 30-year Treasury yields climbed to their highest level since 2007, Bessent unexpectedly announced a larger long-dated Treasury buyback program. Under the plan, the minimum size of each buyback operation will increase from $2 billion to $4 billion between Sept. 9 and Nov. 4.
No added guidance on larger buybacks
Asked whether the Treasury could expand the buybacks even more, Bessent said, "We haven't bought a single bond yet. The next operation won't be until Sept. 9."
The comment was more restrained than his earlier suggestion that the buyback size could go beyond the newly established minimum.
Treasury says issuance will stay on its regular path
Analysts cited in the source said Treasury buybacks are fundamentally a routine and predictable debt-management tool, not an emergency measure for market stress.
Bessent had previously said he had "a full set of tools" to stabilize the Treasury market, prompting outside speculation that the department could reduce long-dated debt issuance.
On whether the Treasury would trim long-bond auction sizes, Bessent said the department would proceed under its "regular issuance schedule." He also indicated that any specific arrangement would be disclosed in next quarter's quarterly refunding announcement.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
