Scott Bessent, who became the 79th US Treasury Secretary on January 28, 2025, announced in early August that the government would double its buyback operations for longer-dated bonds, from $2 billion to $4 billion per operation. This strategy aims to reduce Treasury supply to push down yields, which serve as benchmarks for mortgage rates and corporate borrowing costs. The bond market has not followed this direction: the 10-year Treasury yield stands between 4.69% and 4.73%, while the 30-year yield reaches 5.23% to 5.27%, its highest level since 2007. US public debt now exceeds $40 trillion, with annual interest payments exceeding $1 trillion, making bond buybacks insufficient against the scale of these figures.
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