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Treasury plans to double long-term bond buybacks, Bessent says

Bessent said buybacks could exceed $4 billion per issue, as 30-year gains faded and 10-year and 30-year yields stayed higher after his comments.

Reported · Written up by our desk · Government Bonds

US Treasury Secretary Scott Bessent said the Treasury’s recently announced expansion of longer-dated bond buybacks could result in purchases of more than $4 billion per issue. Speaking on CNBC, he framed the effort as a signal meant to steer investors toward underlying fundamentals rather than headline trading, during a quiet period with a thin market.

The Treasury Department said on Wednesday it would increase buybacks for longer-dated securities “by at least double,” and the market reaction was short-lived, with US 30-year bonds erasing gains by Thursday. Despite that, yields on the 10-year and 30-year securities remained higher following Bessent’s remarks.

Bessent linked the move to broader fiscal consolidation aims to curb the deficit and reduce borrowing costs. He said the administration is planning to announce an increased focus on fiscal consolidation this week or early next week, with the government reviewing both revenues and costs.

Investors remain focused on wide fiscal deficits and inflation concerns tied to the war in Iran and supply pressure from a surge in borrowing for artificial intelligence-related investment. The report also noted that the cost of servicing the national debt reached a record $40 trillion this week.

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