Treasury to buy back triple the bonds
The Treasury Department will buy back up to three times its usual amount of long-term debt tomorrow as the Trump administration continues trying to bring borrowing costs down.
Tomorrow, the Treasury Department plans to purchase up to three times the amount of long-term debt it typically buys, as the Trump administration endeavors to reduce borrowing costs. Although the markets did not react strongly to the announcement, yields initially fell before recovering. Treasury Secretary Scott Bessent had previously stated that he would at least double the buybacks following record-high debt levels, which drove yields to their peak since 2007.
However, the initiative has thus far failed to achieve its desired effect. Economist Douglas Holtz-Eakin, head of the American Action Forum, criticized the approach, cautioning that while clever financial solutions may seem tempting, they should not replace fundamental policy changes. Bessent acknowledged the challenge, asserting that legislative action is necessary and that the administration's reluctance to legislate undermines their efforts.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
