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Scott Bessent Leads Treasury Department Effort to Double Government Debt Repurchases to Stabilize Bond Market

The administration announced that the U.S. Treasury Department will more than double the size of its government debt repurchases, increasing the maximum operation size from $2 billion to at least $4 billion. Led by Secretary Scott Bessent, the move targets the 10- to 30-year portion of the Treasury market to provide liquidity and lower yields, which have recently surged to levels not seen in nearly 20 years. Following the announcement, yields on the benchmark 10-year note and 30-year bond tumbled, while stock market futures rose. President Trump said that Americans should not be worried about the bond market, though some analysts suggest the move may be a short-term political action rather than a fundamental change in debt financing. Critics note that while the move provides immediate relief, it does not address the underlying need to finance large government deficits and the growing debt of big technology companies. The operation will run from September 9 through November 4.

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