Making a Case for Scott Bessent's Treasury Buybacks

In August, the U.S. Treasury it would increase Treasury buybacks. Initially, it suggested it would buy at least $2 billion in additional long-term bonds over the next two months, from September to November, with the stated goal of improving liquidity for longer-term Treasury bonds. The move also implies a shift toward more short-term Treasury issuance rather than long-term Treasury issuance. On the initial announcement, the 30-year Treasury bond yield instantly fell by eight basis points on the news that there will be less relative supply of long-term bonds.    Read Full Article »