US Treasury Announces Expansion of Bond Buybacks Amid Rising Yields
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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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CNBCThe Treasury Department, led by Scott Bessent, said Wednesday it would double the size of its debt repurchases, mainly at the long-end of the yield curve.
Financial TimesUS Treasury to double buybacks of long-term government debt Sharp sell-off in recent weeks has sent borrowing costs soaring
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.
BloombergBessent Says Buybacks May Be More Than $4 Billion Per Issue US Treasury Secretary Scott Bessent said increased buybacks of Treasury securities announced this week could be more than $4 billion per issue.
ZeroHedgeTraders are taking stock after Treasury Secretary Scott Bessent announced a surprise increase in long-term bond buybacks to stem a rise in yields that had taken them to a near two-decade high. When it comes to Bessent’s plan to increase buybacks of longer-dated debt, Vital Knowledge founder Adam Crisafulli says “the Treasury action is somewhat minor and insignificant compared to the powerful secular forces pushing yield higher,” and JPMorgan sees credibility risk from the action. And with many warning the plan may be a short-term fix given concerns about large fiscal deficits and oil-driven inflation, that has already been realized as yields rise above where they were before the intervention yesterday!
Common DreamsThe Trump administration on Wednesday unveiled a plan to ease upward pressure on the cost of US debt by doubling its bond buybacks through November.
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So much for the brief calm in the U.S. bond market. Treasury Secretary Scott Bessent’s latest effort to control yields on long-dated U.S. bonds was short-circuited a day later as the U.S. national debt hit the $40 trillion mark and oil prices spiked as a result of the Iran war.
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ZeroHedgeMarket Snapshot Top Overnight News The US’s national debt has hit a record $40tn as borrowing rises at a historic pace, fuelling investor concerns about the state of America’s public finances despite Donald Trump’s vow to bring spending under control. FT Scott Bessent’s shock Treasury intervention reverberated through markets, with analysts warning his plan risks being a short-term “circuit breaker” at best. Underscoring jitters, long end US yields edged higher. Bessent is emerging as the most interventionist Treasury chief in decades. BBG The US will begin what Donald Trump called “unprecedented” economic warfare against Iran after failing to reach a deal. He gave no details but also threatened to target Iran’s trading partners. Brent rose above $93.
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US 30-Year Bonds Erase Gains From Bessent’s Buyback Plan US bonds unwound all of the gains that followed Treasury Secretary Scott Bessent’s plan to increase buybacks of longer-dated debt. The moves pushed the 30-year yield on Thursday back to levels seen just before the Treasury’s announcement a day prior. Ira Jersey of Bloomberg Intelligence has more. (Source: Bloomberg)
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Financial TimesUS long-term bonds slide as Bessent intervention fails to soothe investors Yield on 30-year Treasuries rises despite move to ‘at least double’ purchases of securities
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The yield on the key 10-year Treasury note touched its highest point more than a year Tuesday, topping 4.7%, before falling back Wednesday. Mortgage rates have followed the 10-year higher, lifting borrowing costs for potential buyers. The yield on 30-year bonds reached the highest level since 2007.
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CNBCYields on 10-year U.S. Treasurys — the main benchmark for mortgages, auto loans and credit card debt — moved 1 basis point higher to 4.6723%. The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, was last seen holding steady at 4.1727%.
Epoch Times BusinessOn Aug. 17, the 30-year Treasury yield topped 5.31 percent, the highest since June 2007.
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In announcing that it will buy back "at least" $4 billion worth of bonds over a two-month period, the US Department of Treasury said it was seeking "to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants."
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BBC BusinessThe Treasury Department said its intervention reflected its "desire to provide greater liquidity support" for longer-term bonds.
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The recent surge in bond yields has been driven by rising oil prices caused by the US-Iran war, with investors concerned over inflation.
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Common DreamsExperts 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.
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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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.
BBC BusinessPublished Long-term borrowing costs in the US eased on Wednesday after the Treasury department announced it would buy back more debt.
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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 ZeroHedge US futures slide and are trading at session lows, as bond yields surge after yesterday’s Treasury announcement, having now erased the entire post buyback-boost move; yields are 4-5bps higher as the curve bear steepens sharply with the 10Y yield now at 4.69%, above where it was before the Treasury's press release yesterday, driven by a surge in Brent above $94 after Trump vowed to unleash an "Economic D-Day" on Iran's economy. As of 8:00am ET, S&P futures are down 0.2% and Nasdaq futures slide 0.3%. Pre-mkt, Memory / Semis are leading the Tech tape after a stronger APAC Tech session; Mag7 / Software are lagging. Cyclicals are seeing broad-based strength. Defensives are lagging with HC seeing profit-taking.
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02 Bloomberg Bessent’s Treasury Twist Clouds Warsh’s Plea to ‘Play the Ball’ Treasury Secretary Scott Bessent’s intervention to bring down long-term borrowing costs is another complication for the Federal Reserve as it grapples with whether to raise interest rates.
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03 CNBC "We're going to increase the size of the buyback," he said. "I would note that it could be more than the 4 billion per issue."
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04 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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05 MarketWatch Market Extra U.S. bond yields are already surging again a day after Bessent’s debt-buyback plan
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06 BBC Business The move came after the interest rate on 30-year bonds, which are a type of debt used to raise funds from investors, hit 5.34% on Tuesday - the highest level in almost 20 years.
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07 Fortune Many Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, minutes of the Fed’s meeting last month showed.
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08 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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