đŸ•’ Created · Updated

Scott Bessent signals potential expansion of Treasury bond buyback operation to stabilize yields

U.S. Treasury Secretary Scott Bessent indicated on Thursday that the Treasury could expand its bond buyback operation beyond the initial $4 billion. The move was intended to stabilize yields, which Bessent stated do not currently reflect market fundamentals. However, market analysts expressed skepticism regarding the long-term impact of the intervention, with some suggesting the move could backfire or lack credibility without real fiscal consolidation. During the same period, the administration announced that the national debt topped $40 trillion for the first time. While the administration announced the intervention, President Trump expressed confidence in the bond market, telling reporters that Americans should not be concerned. Bessent also noted that the U.S. budget deficit may have peaked under President Trump. Market reactions were mixed. While yields briefly eased following the announcement, they quickly resumed their upward march toward multi-decade peaks. Stocks and oil prices rose as the administration announced the debt milestone and as energy prices climbed following threats of economic warfare on Iran.

Sources