US Treasury to Announce Bond Buyback of Up to $10 Billion

The U.S. Department of the Treasury will announce a new buyback of long-term Treasury bonds on September 10, with expectations that the amount will exceed $4 billion. Scott Bessent, who is responsible for the operation, previously doubled the planned buyback volume from $2 billion to $4 billion and believes that the new operation could be larger. Morgan Stanley estimates the upper limit of the buyback at $10 billion, while economist Lou Crandall considers $5-6 billion to be realistic. The need for the buyback arose after the yield on 30-year bonds rose to 5.337%, the highest level since 2007. Following the announcement of the buyback, the yield fell to 5.19% but began to rise again. As of the latest trading, the yield on 30-year bonds was 5.235%, while that of 10-year bonds was 4.704%. Bessent noted that the yield level is not the only reason for the buyback; he aims for bond prices to align with economic indicators. The U.S. national debt has surpassed $40 trillion for the first time. The Treasury's change in approach has already impacted financial markets, notably pushing the price of gold up to $4,525 per ounce. Regular bond buybacks could support risk assets like Bitcoin by improving liquidity.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.