The US Treasury announced on August 19-20 that it would double its long-term debt buybacks to a minimum of $4 billion per issue, aiming to counter surging bond yields. The 30-year Treasury yield had reached its highest level since 2007. This decision puts Treasury Secretary Scott Bessent in direct conflict with Federal Reserve Chair Kevin Warsh, who welcomes higher long-term rates as a sign of market independence. This divergence represents a rare institutional standoff, with the Treasury actively intervening in the bond market while the Fed advocates for a hands-off approach. Analysts note that activist Treasury policy has become as material as central bank policy in shaping macroeconomic conditions.
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