Treasury Announcement Doubles Buybacks Amid Rising Treasury Yields
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The concern follows a Treasury announcement Wednesday saying it will be at least doubling the size of its typical $2 billion debt buyback, a routine operation begun in 2024 that helps provide a market for longer-dated debt.
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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.
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The announcement came after the 30-year yield hit the highest level in nearly 20 years. While yields briefly retreated, they soon climbed back to their earlier levels as Wall Street doubted Bessent’s ability to hold back the $32 trillion Treasury market.
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CNBCThough Treasury Secretary Scott Bessent insisted the move wasn't an attempt to tamp down yields, it came after the 10- and 30-year Treasurys hit levels not seen since prior to the global financial crisis in 2008.
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The jump in yield has been tied to a number of factors, inflation fears prominent among them. Treasurys also have been forced to compete against higher-yielding government debt in Asia and Europe, a record-setting surge of issuance from hyperscalers investing in artificial intelligence, and a general rise in term premiums, or the extra yield investors demand for holding U.S. debt, which surpassed the $40 trillion mark this week.
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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.
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.
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The U.S. Dollar Index—a measure of the greenback against a weighted basket of currencies—continued its weakness in the middle of the trading week. The index slumped more than 0.5 percent and pared its year-to-date gain to below 1 percent.
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CNBCWhile yields rose, the dollar also weakened, continuing a trend this week that has seen the greenback lose nearly 0.9%.
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Cryptocurrencies and precious metals shot higher, while the U.S. dollar weakened, after the Treasury Department said it planned to double its bond buybacks
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FortuneSimilarly, the Treasury’s buyback plan caused the dollar to tumble in what Wall Street has dubbed the return of the “debasement trade.” That was accompanied by a jump in precious metal prices, as investors anticipate further dollar devaluation.
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Bessent’s action shows a desire by the Treasury Department to have greater control over market pricing
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Brett Arends's ROI Opinion: Trump, Vance and Bessent try to calm the bond market with ‘alternative facts’
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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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New York Post BusinessTreasury Secretary Scott Bessent said he may again increase the volume of Treasury bonds the government will repurchase SHAWN THEW/EPA/Shutterstock
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Audio 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.
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Epoch Times BusinessYields 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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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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Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 Bloomberg Bond Market Tests Limits of Treasury Intervention Joining Bloomberg This Weekend is Bloomberg Radio host of "Masters in Business" Barry Ritholtz and he tells hosts David Gura and Christina Ruffini that Treasury Secretary Scott Bessent’s bond-market moves may provide short-term relief but cannot override persistent inflation, rising debt and the forces setting long-term yields. (Source: Bloomberg)
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02 CNBC Treasury Secretary Scott Bessent's debt buyback announcement this week fits into a broader pattern that can signal a forthcoming crisis, according to billionaire investor Ray Dalio.
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03 MarketWatch Market Extra Why an announcement from the Treasury sparked a rally in gold and bitcoin this week
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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 Fortune Treasury Secretary Scott Bessent appears to be heading down a path similar to Japan’s, and it signals “debasement” of the dollar, according to a top economist.
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06 Financial Times Bossing the bond market around never works Despite Scott Bessent’s efforts, investors worry something is up
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07 RealClearMarkets Another Speculation On Why Bond Markets Are In Decline Joel Mathis, The Week Inflation, war and rising debt raise concerns among investors
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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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09 New York Post Business Stock indexes fell on Thursday and hovered near two-week lows, as rising Treasury yields dented risk appetite and disappointing results from retail bellwether Walmart added pressure along with rallying oil prices.
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- ft
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- commondreams
- npr-economy
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