U.S. Treasury Secretary Scott Bessent said on Thursday the department may raise the size of its bond buyback program beyond the previously announced $4 billion per issue, signaling a potential expansion in the government’s efforts to stabilize Treasury markets.
Speaking during an interview on CNBC, Bessent stated that the Treasury is considering increasing the volume of repurchases to ensure market equilibrium, emphasizing the program’s role in reinforcing bond fundamentals. The announcement comes one day after the department surprised investors by unveiling plans to double the buyback amount, a move aimed at addressing perceived distortions in Treasury yields.
Bessent noted that the buyback initiative serves a broader signaling purpose, adding that the Treasury aims to demonstrate that current yields do not fully reflect underlying market fundamentals. "We're going to increase the size of the buyback," he said, adding that "it could be more than the $4 billion per issue." The remarks underscore the government’s proactive approach to managing liquidity and price signals in the world’s largest bond market.
