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Bessent signals larger Treasury bond buybacks beyond $4 billion

He linked the potential increase to signaling that yields do not reflect fundamentals, while saying the Treasury and the Fed would coordinate if the Fed balance sheet changes.

Reported · Written up by our desk · Central Banks

U.S. Treasury Secretary Scott Bessent said the Treasury could raise bond buybacks beyond $4 billion, describing the move as partly a signal to markets that current yields do not reflect underlying economic fundamentals, according to FXStreet.

Bessent added that interest rates would not factor into the buyback decision, and he suggested there is a very good chance the U.S. deficit has already peaked. He also indicated the administration will likely place more emphasis on fiscal consolidation.

On other fiscal and policy points, Bessent downplayed the $40 trillion debt threshold and said tariff revenues in 2026 are expected to be similar to 2025 levels. He also said the Treasury and the Federal Reserve would coordinate if there are changes to the central bank’s balance sheet.

FXStreet reported the U.S. dollar showed little reaction, with the U.S. Dollar Index holding around 98.80, while the benchmark 10-year Treasury yield remained supported after a decline on Wednesday, rising by more than 6 basis points to about 4.70% on Thursday.

Latest closeDollar index 99.64 ▼0.3%

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