Treasury Deploys Larger Debt Buybacks Amid Rising Yields, Indicating Concerns Over Long-Te
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Bessent Deploys Debt Buybacks in Sign of Concern Over Yield Rise US Treasury Secretary Scott Bessent made a fresh attempt to rein-in long-term borrowing costs from multi-year highs, sending Treasury yields and the dollar down. Ira Jersey, Chief US Interest Rates Strategist for Bloomberg Intelligence, discusses the move. (Source: Bloomberg)
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The Treasury Department on Wednesday said it will more than double the size of its government debt repurchases, sending yields sharply lower.
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Epoch Times BusinessFrom Sept. 9, the Treasury will double the size of its government debt repurchases to $4 billion, focusing its buyback operations on 10- to 20-year and 20- to 30-year bonds.
MarketWatchThe effect of a debt buyback can be to push prices higher and yields lower The Treasury Department said Wednesday that it will more than double the size of government-debt buybacks, sending yields sharply lower and stocks higher at the market open.
Financial TimesUS Treasury to double buybacks of long-term government debt Sharp sell-off in recent weeks has sent borrowing costs soaring
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According to the statement, "this increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations."
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CNBCThe change will start Sept. 9 and stay in effect through Nov. 4. "This increase in buyback operation sizes reflects Treasury's desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations," the department said in a statement. This is breaking news. Please refresh for updates.
Epoch Times BusinessIncreasing buyback operation sizes indicate the Treasury’s commitment to offer more liquidity support amid consistent and robust demand from investors, “as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations,” the department said in an Aug. 19 statement.
Washington Times BusinessBut Treasury yields fell in the morning after the U.S. Treasury Department said it will at least double the size of its planned purchases of longer-term Treasurys from Sept. 9 through Nov. 4. The department said it’s doing so “to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants.”
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The 30-year Treasury yield, which has recently touched its highest level since 2007, fell more sharply to 5.19% from 5.28% late Tuesday.
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Epoch Times BusinessOn Aug. 17, the 30-year Treasury yield topped 5.31 percent, the highest since June 2007.
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Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 Bloomberg Treasury Bond Buybacks Evoke Memory of Fed’s ‘Operation Twist’ The Trump administration’s surprise move to ramp up buybacks of long-dated Treasuries is drawing parallels with the Federal Reserve’s “Operation Twist,” a strategy that was last deployed in 2011 to pull down bond yields.
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02 MarketWatch Brett Arends's ROI Opinion: Want to bet on the bond rally? Check out these overlooked funds.
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03 CNBC Yields fell sharply following Wednesday's announcement, while stocks rose . "It's a put. It's an obvious put," Cramer said, using an options term for a contract designed to protect an investor from downside risk. Cramer and others in the past have referred to the Trump administration's tendency toward market-friendly policies as a "Trump put." In Wednesday's announcement, the Treasury said it will target securities in the 10- to 20-year and 20- to 30-year portions of the bond market, where demand has weakened. The program does not reduce the government's overall debt load, but is designed to improve liquidity by buying back existing securities.
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04 ZeroHedge Over the past several years, one of the more amusing debates gripping the market's Fed-watchers was whether the Fed's treasury buyback auctions were a form of soft QE, with this website consistently arguing that - contrary to what washed out ex-Bridgewater traders with a newsletter to sell may tell you - Treasury buybacks were just that, to wit:
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05 Epoch Times Business Yields on long-term U.S. bonds fell midweek after the Treasury Department said it would expand long-end debt buybacks amid climbing rates.
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06 Fortune The bond market is the only major asset class currently pricing risk correctly, according to Johns Hopkins economist Steve Hanke—and what it’s pricing in is ugly. In an interview with Fortune, Hanke argued that President Trump has inadvertently mixed what he called “a deadly cocktail” for Treasuries, and the result is a bond selloff that has already pushed yields past the informal threshold Treasury Secretary Scott Bessent has been trying to defend.
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07 Washington Times Business NEW YORK — U.S. stocks are ticking higher Wednesday after the U.S. Treasury Department said it will buy more U.S. government bonds in a move that eased pressure on financial markets worldwide. Strong profit reports for the spring from Estee Lauder, Target and other U.S. companies are also helping to support the stock market.
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