Treasury yields rebound, wiping out the decline following Bessent’s intervention
The rebound erased Wednesday’s drop after the Treasury doubled long-dated buybacks to at least $4 billion per operation, analysts said.
- On Wednesday, Treasury Secretary Scott Bessent announced the U.S. Treasury would double long-term bond buybacks to at least $4 billion per operation, targeting 10- to 30-year maturities. The 30-year yield spiked to 5.627% Thursday and the 10-year climbed to 4.71%, erasing Wednesday's gains.
- Rising yields pushed the 30-year to its highest level since 2007 on Tuesday, with the bond selling at auction last week at 5.22%, the highest since 2001. National debt crossed $40 trillion Wednesday after ballooning $3 trillion in 12 months, prompting Bessent's intervention.
- The Treasury increased maximum repurchases from $2 billion to at least $4 billion per operation, starting September 9 through early November and seeking "greater liquidity support in longer-dated nominal sectors." Jefferies analysts argued the additional purchases are too small against the $32 trillion Treasury market to alter supply-demand dynamics.
- JPMorgan Chase analyst Maia Crook warned the buybacks "belie the underlying structural challenges and do nothing to address them," signaling Treasury credibility for "regular and predictable" debt management is increasingly in question. Eoin Walsh at TwentyFour Asset Management told the Financial Times the intervention looks like "a sticking plaster."
- The Bipartisan Policy Center projects the government could reach its $41.1 trillion borrowing limit between late winter and midsummer 2027. Annual interest payments are projected to exceed $1 trillion this year, consuming about 19% of federal revenue and rising to 26% by 2036 if current trends persist.
47 Articles
47 Articles
The intervention in order to contain the yields of the Treasury out of control, while the public debt breaks through the 40 trillion dollars, is not enough to calm the tensions, as expected. The secretary to the Treasury relaunches: "The repurchases will be over 4 billion, we have a vast arsenal." The move is part of the strategy of rewriting the rules with its methods: from bonds to actions, from raw materials to energy, the intervention of the…
(New York = Yonhap News) Correspondent Lim Soo-jung = U.S. long-term Treasury yields recovered the losses from the Treasury Department's surprise announcement of expanded buybacks on the 20th (local time) in just one day...
The US has a $40 trillion debt problem, but the government is only offering Band-Aids - The Boston Globe
Yields fell Wednesday after the Treasury Department increased its planned repurchases of long-term bonds, but analysts said the impact would likely be short-lived because the amounts involved are small compared with the nearly $30 trillion Treasury market.
Scott Bessent's shock move earns derision: 'Rearranging deck chairs on the Titanic'
Treasury Secretary Scott Bessent's shock bond buyback plan unraveled Thursday as yields climbed back to their pre-announcement levels.On Wednesday, Bessent announced the Treasury would at least double its buybacks of long-dated bonds — from $2 billion to at least $4 billion per operation, starting S...
The US Treasury seeks to support the liquidity of the bond market by buying more long-term debt, in order to reduce yields ...
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