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U.S. Treasury will keep its regular auction schedule despite larger buybacks
Treasury Secretary Scott Bessent said enlarged 10- and 20-year buybacks start on September 10, while the department has not yet purchased bonds under the increased program.
The U.S. Treasury will continue with its regularly scheduled debt auctions, including for long-dated bonds, even as it increases buyback sizes for 10- to 30-year securities, Treasury Secretary Scott Bessent said Monday, according to Reuters. Bessent said the department would stick to the auction program it announced in early August and noted that it has not purchased any bonds yet in the enlarged buybacks. The increased repurchases are set to begin on September 10 for 10- and 20-year securities.
Reuters reported that the Treasury chief’s plan, announced last week, was intended to support the longer end of the curve after yields reached the highest levels in nearly two decades. The move briefly helped pull down yields on 10-year notes and 20- and 30-year bonds, though those declines largely faded by the end of the week.
Bessent also warned that countries should cut business ties to Iran and face possible secondary sanctions if they do not comply, and he said a major sanctions announcement related to a bank is expected later this week. The report added that Bessent did not specify the funding source for the buybacks, noting that the Treasury General Account at the Federal Reserve could be used, which would reduce cash reserves, since the Treasury cannot create money like the Fed.