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Treasury Secretary Scott Bessent signals potential expansion of government debt buybacks to stabilize bond yields.

Treasury Secretary Scott Bessent indicated on Thursday that the government may increase its repurchases of longer-dated Treasuries to manage bond yields. This move follows a surprise pledge by the U.S. Treasury to at least double the size of its buybacks of longer-dated debt, an effort intended to rein in yields that have reached their highest levels since 2007. Market analysts suggest that while the strategy to suppress yields has not yet fully succeeded, it has begun to weigh on the U.S. dollar, which recently traded near a three-month low against the euro. The dollar index fell to 98.79, while the euro and sterling strengthened. Meanwhile, Bitcoin surged to $77,060, acting as the administration's currency alternative. The next significant test for yields will occur next Friday at the Jackson Hole Symposium, where Federal Reserve Chairman Kevin Warsh will deliver a speech. Traders are currently pricing in a 35% chance of a rate hike in September and a 69% chance by December.

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