U.S. Treasury Secretary Scott Bessent said in an interview with CNBC this morning the government could buy back more than $4 billion per issue of longer-dated Treasury securities as the department moves to increase purchases amid elevated long-term yields and weak liquidity.
- Treasury announced Wednesday that it would at least double previously scheduled $2 billion buybacks of longer-dated securities.
- Bessent said Thursday that purchases "could be more than the $4 billion per issue," adding that Treasury has a "big toolkit" available.
- Bessent said the intervention is partly intended to signal that current long-term yields do not reflect underlying economic fundamentals.
- He described liquidity in the 30-year Treasury market as "very poor"; the 30-year yield was trading around 5.24% Thursday after briefly falling following Wednesday's announcement.
- Higher yields have increased federal borrowing costs as the national debt reached a record $40 trillion this week.
- Bessent said the Trump administration plans to announce an increased focus on fiscal consolidation as soon as this week or early next week, examining both government revenue and spending.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
