Scott Bessent, the US Treasury Secretary, is doubling down on « Treasury twist » operations to lower long-term borrowing costs by issuing more short-term debt while buying back longer-dated bonds. He announced plans to double buyback operations from $2 billion to $4 billion per operation starting September 9. The 30-year Treasury yield has climbed to roughly 5.3%, its highest level in 19 years, while the 10-year yield stands at approximately 4.73%. US national debt has surpassed $40 trillion with annual interest costs approaching $1 trillion. Market participants remain skeptical as buyback announcements have only produced brief yield dips before rebounds, suggesting concerns about fiscal sustainability remain unaddressed.
Source: Read the original article
