Skip to content
Sign In Subscribe
Economy — Federal Reserve — Banking — Breaking News — Power & Capital

U.S. Treasury Moves To Steady Long-Term Bond Market

Treasury Secretary Scott Bessent will oversee the expanded program, which will focus on debt maturing in 10 to 20 years and 20 to 30 years.

,   and  Power & Capital Desk
2 min read
Photo by Connor Gan / Unsplash

The U.S. Treasury Department plans to more than double its government debt buybacks as officials seek to improve liquidity in the longer-term bond market, according to the department.

Treasury Secretary Scott Bessent will oversee the expanded program, which will focus on debt maturing in 10 to 20 years and 20 to 30 years. The maximum size of individual buyback operations will rise from $2 billion to at least $4 billion beginning September 9.

💡
The announcement came as bond yields have climbed sharply, with longer-dated Treasuries facing weaker demand. Following the news, the 10-year Treasury yield fell to 4.647%, while the 30-year yield dropped to 5.196%.

Treasury said the move is intended to provide additional liquidity in longer-dated sectors where investors continue to show demand.

Market analysts have cited higher term premiums, changes in the Treasury investor base and increased corporate debt issuance linked to artificial intelligence as factors behind recent yield pressures.

As noted by investor Peter Boockvar, the program does not reduce federal debt. Instead, it changes the maturity mix of Treasury obligations.

Related Tweet:

Also Read:

USS George Washington Set To Relieve USS Lincoln After Nine-Month Deployment
The Navy said the carrier recorded its 200,000th aircraft landing during the operations.
tippinsightsTIPP Staff

Comments

Related

The Blue-State Hurricane
Politics

The Blue-State Hurricane

Long after the current spell of bad weather, blue states across the country will continue to suffer the hurricane-like damage of their own fiscal mistakes.

,   and  TIPP Staff
Members Public

Latest

Trump Prepares For An Invasion Of Cuba
Cuba

Trump Prepares For An Invasion Of Cuba

It is estimated the US would require more than 100,000 troops to conduct an invasion of Cuba and air and naval support would be essential for operational success.

,   and  TIPP Staff
Members Public
Who In Hell Are The Houthis?
Defense

Who In Hell Are The Houthis?

Houthis like to argue, smoke weed and repel invaders. They live in one of our planet’s wildest, most inhospitable regions, so bleak and arid that even the local camels are cranky and irritable.

,   and  TIPP Staff
Members Public