US Treasury Secretary Scott Bessent is considering using the roughly $950 billion Treasury General Account balance to fund an expanded bond buyback program targeting the long end of the Treasury market. The buyback cap was doubled from $2 billion to at least $4 billion per transaction, with operations running from September 9 through November 4. The focus is on securities with maturities between 10 and 30 years, as the 30-year yield hovers around 5.23% to 5.25%. By purchasing older bonds with higher coupon rates at discounts, the Treasury aims to retire expensive debt while improving liquidity conditions, amid US public debt crossing $40 trillion in mid-August.
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