U.S. Treasury Secretary Scott Bessent announced a doubling of long-term bond buybacks from $2 billion to $4 billion per operation, starting September 9, aimed at reducing yields on 10- to 30-year maturities. The 30-year Treasury yield had reached nearly 5.34% in August, a 19-year high, before briefly declining and settling around 5.24% to 5.28%. This initiative faces massive headwinds from federal debt levels: annual deficits exceed $2 trillion and the national debt has surpassed $40 trillion. The buyback program, running through November 4, may prove insufficient given the scale of borrowing needs, especially as the Federal Reserve maintains its tightening stance. The Treasury secretary has also deployed currency interventions to support the yen and adjusted bond issuance to reduce long-term debt supply.
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