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Secretary Scott Bessent Announces Expanded Government Debt Repurchases to Stabilize Long-Term Treasury Yields

The Treasury Department announced on Wednesday that it will at least double the size of its government debt repurchases, targeting bonds with maturities of 10 to 30 years. This move by Secretary Scott Bessent aims to partially reverse a selloff in longer-term U.S. debt that has been driving up interest rates for mortgages and consumer loans. The expanded buyback program, which increases the ceiling for each operation from $2 billion to at least $4 billion, takes effect on September 9 and runs through November 4. The announcement came as the stock market reacted positively to the news, with the Dow Jones Industrial Average rising 230 points and the S&P 500 and Nasdaq Composite both gaining 0.4%. Notably, Moderna stock surged over 80% following positive data from an experimental cancer vaccine study. The Treasury's action follows a period of global bond routs and elevated oil prices. While the administration announced the expansion of the buybacks, the market remains focused on upcoming Federal Reserve meeting minutes and retail earnings reports.

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