US: Treasury to buy back $6 billion of Treasuries, three times the usual amount

(Il Sole 24 Ore Radiocor) - The US Treasury Department has announced that it will buy back $6 billion of government debt, in a move aimed at ensuring the continuity of the bond markets. The much-anticipated announcement triples the amount normally allocated for buy-back operations and follows the announcement on 19 August, when Treasury Secretary Scott Bessent stated that the department would at least double the standard amount for previously issued securities. Although the operation is ostensibly aimed at maintaining liquidity in the government bond markets – in this case for 10- and 20-year bonds – the extraordinary measure has also been interpreted as an attempt to curb yields on Treasury bonds, which have recently reached levels not seen for years.

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