U.S. Treasury Doubles Bond Buybacks Amid Debt-Driven Yield Surge
Analysts said the United States' public debt, now over $32 trillion, was pushing Treasury yields higher as the bond market questioned the government's fiscal trajectory on 19 August. The Treasury Department had announced on 19 August that it would double the maximum monthly repurchase of long-term Treasury securities, a step that halted a recent sell-off but raised concerns about inflation and pressure on the Federal Reserve. Treasury Secretary Scott Bessent reiterated the expansion, noting that 10-year yields had risen to 4.
69 percent. Analysts warned the larger buybacks could weaken the dollar and lift yields further, while senior Treasury officials said the General Account could be tapped to fund the purchases. The Treasury also said it would keep its regular debt-auction schedule even as the buyback limit was raised to at least $4 billion per operation, prompting mixed reactions from market participants.
