The Treasury Department announced Wednesday that the federal government will buy back up to $6 billion of its bonds this week — triple the size of its normal operations — in a bid to rein in longer-term borrowing costs.
The extraordinary move comes as yields on Treasuries have been rising steadily over the past couple of months, threatening to drive up mortgage rates and consumer borrowing costs as the midterm elections approach. Interest rates paid by the U.S. government feed into all other debt costs globally.
But after Treasury’s announcement, the yield on the 10-year Treasury went up, suggesting investors are unimpressed by this week’s buyback, which was previewed last month.
Treasury Secretary Scott Bessent is aiming to project strength as he looks to strong-arm markets, which he has said are incorrectly pricing U.S. debt.
“I have asymmetric information. I am the house now,” he said at an event Tuesday in Dallas, referring to criticism of various market interventions he has undertaken, such as a move to support Japan’s currency. “Bet against me if you want.”
The department will reabsorb certain older debt securities with maturities of 10 years and 20 years as part of the buyback operation, which will take place Thursday.
Posted by John3262005
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*But after Treasury’s announcement, the yield on the 10-year Treasury went up, suggesting investors are unimpressed by this week’s buyback, which was previewed last month.*
Well, Treasury can always buy more bonds then
Definitely an example of if at first you don’t succeed, try try again
Bessent’s “I am the house” seems to be on unstable grounds or use cheap materials then because it ain’t working yet
What an absolute circus every aspect of this administration is