Treasury Secretary Bessent said the Treasury’s expanded buybacks of 10- to 20-year older Treasury bonds are aimed at stabilizing long-term yields and correcting “frenzy” in the bond market, not quantitative easing.
Markets expect the latest buyback round to total at least $4 billion. A program near $10 billion would set a new benchmark for future operations and could pressure long-end yields, while Morgan Stanley said $10 billion is close to the current operational ceiling. Wrightson ICAP sees $5 billion to $6 billion as a reasonable starting point.
Bessent described the buybacks as a term-structure adjustment similar to “Operation Twist” and denied any credit concerns. On yen intervention, he said, “I am the dealer,” adding that he would use information advantages to counter yen bears.
Treasury Secretary Says Bond Buybacks Are ‘Not QE’
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