US Treasury Secretary Scott Bessent announced on August 19 a significant expansion of buyback operations for long-term US government bonds, raising their maximum size from $2 billion to $4 billion for bonds with maturities of 10 to 30 years. The 30-year Treasury yield had reached 5.34%, its highest level in 19 years, and this announcement temporarily lowered it by approximately 10 basis points. However, this relief proved short-lived as structural pressures in the bond market resumed. Against a $32 trillion Treasury market, analysts describe these buybacks as a band-aid on a structural wound, with new debt issuances continuing to grow due to record budget deficits and sustained AI-related capital spending.
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