US Treasury Expands Bond Buybacks Amid Rising Interest Rates, Sparking Yields Fall
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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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NPR EconomyAudio will be available later today. NPR's Leila Fadel speaks with Bloomberg's Stacey Vanek Smith about why the U.S. Treasury acted to push down long-term bond yields and how that relates to the ballooning U.S. debt.
CNBCLonger-dated U.S. government bond yields steadied on Friday, as investor jitters over the Treasury Department's extended debt repurchase program and soaring national debt continue to weigh on markets.
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U.S. Treasury Secretary Scott Bessent on Thursday indicated that his department could make additional moves in the wake of its announcement that it would at least double the size of its buybacks of longer-dated Treasury bonds.
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FortuneU.S. Treasury Secretary Scott Bessent’s big move on bonds didn’t last long. Yields on the 30-year Treasury are climbing back up to where they started on Wednesday, when Bessent announced he would double the Treasury’s purchases of long-dated bonds to at least $4 billion “per operation” in hopes of reducing their interest yield.
Financial TimesWhat is Bessent doing with the $32tn Treasury market — and will it work? US Treasury secretary has made a high-stakes bet he can beat back soaring borrowing costs
BloombergIs Bessent Facing a Bond Market Credibility Issue? Jefferies Economist Modupe Adegbembo and Morgan Stanley Chief European Equity Strategist Marina Zavolock weigh the impact of US Treasury Secretary Scott Bessent's announcement that the department would at least double the size of its long-dated bond buybacks. They speak on Bloomberg Television. (Source: Bloomberg)
Common DreamsWhile the announcement did result in interest rates for US treasuries dropping, economists and other political observers are warning that Treasury Secretary Scott Bessent's scheme to stop spiking yields will prove ineffective over the long term.
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.
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The US Treasury is buying long bonds, but not very many Speaking loudly but wielding a teeny-tiny stick in
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RealClearMarketsThe US Treasury is buying long bonds but not very many. Read Full Article »
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The Treasury didn’t immediately respond to a request for comment on Bessent’s market measures.
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The Treasury’s move comes just weeks after Fed Chairman Kevin Warsh had enthused over financial markets being freed of forward guidance. “Market participants are learning to play the ball, not the referee, and market prices will continue to respond in the direction and magnitude they see fit.”
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Epoch Times BusinessUnder Chairman Kevin Warsh, the Federal Reserve has pulled back on forward guidance, meaning the central bank will not signal to financial markets which policy decisions it plans to make. The objective behind this thinking is to allow the financial markets to move without handholding by the Fed.
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Experts say that bond yields have been spiking to highs not seen since the start of the Great Recession due to investor anxiety over a number of factors, including inflation, the size of the US government's debt, and Trump's illegal war with Iran.
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Epoch Times BusinessA broad array of factors has pushed up yields, including persistent war-driven inflation fears, fiscal worries, potential monetary policy tightening, and competition from artificial intelligence-related corporate bonds.
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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 CNBC Yields on the 30-year U.S. Treasury note, the primary focus of the buyback plan, rose 1 basis point to 5.2508%.
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02 Financial Times Scott Bessent takes on bond vigilantes in $32tn Treasury market Wall Street investors say move to buy more long-term US debt is a ‘band-aid on a bullet hole’
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03 Fortune Analysts are generally nonplussed. The Japanese yen—while stronger against the dollar than in its June slump—has unwound to roughly the level it started the year at. The drift back to market-perceived fair value is “hardly surprising,” quipped UBS’s Paul Donovan.
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04 MarketWatch Market Extra U.S. bond yields are already surging again a day after Bessent’s debt-buyback plan
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05 Common Dreams 5 #000000 #FFFFFF "Trump is going to pump billions of dollars into the bond market to push down interest rates through the election, then let everything fall apart again," said one critic.
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06 Epoch Times Business A Treasury buyback is when the federal government purchases its own bonds before they mature, retiring older securities and replacing them with new issuance.
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