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Scott Bessent signals confidence in Treasury buybacks as investors await upcoming inflation reports

Scott Bessent stated that the next round of Treasury buybacks will be at least $4 billion per operation. The administration announced that the 10-30yr buybacks would be $4 billion per operation, but Bessent noted that this figure represents a minimum amount.

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Investors are currently awaiting the Producer Price Index and Consumer Price Index reports scheduled for Thursday and Friday. These reports are expected to be significant because they will likely determine whether the Federal Reserve will hike or hold interest rates at next week's meeting. Bessent expressed confidence in his strategy, stating, "I am the house now," and "you can bet against me if you want." He noted that recent bond market resilience appears to be a risk management strategy to avoid being caught on the wrong side of the upcoming 11 a.m. announcement. While more Treasury buybacks are mathematically incapable of serving as lasting inspiration for buyers, the announcement is the primary economic event of the day.

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