Bessent vows bigger buybacks after bond yields erased the US Treasury's relief rally
Long-term US Treasury yields climbed back above where they stood before Wednesday's buyback announcement, wiping out the relief that move had briefly delivered, and prompting US Treasury Secretary Scott Bessent to signal that Washington is ready to intervene even more aggressively.
US Treasury Secretary Scott Bessent is grappling with a rising challenge amid efforts to control long-term bond yields in the $32 trillion Treasury market. Despite announcing plans to double its purchases of longer-dated government bonds from next month, the move has only resulted in short-term gains for 10- and 30-year Treasuries, which have since seen their yields climb back up.
Bessent, known for his interventionist approach, contends that current yields do not accurately reflect economic fundamentals, citing factors like the Iran conflict and liquidity issues in the 30-year market. The administration plans to increase its regular purchases of Treasuries with maturities between 10 and 30 years from approximately $2 billion to at least $4 billion starting September 9.
However, analysts argue that the measures alone may not suffice and may only serve as a "band-aid on a bullet hole".
Written by urgent.news from Hedgeweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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