Signal US Treasury Doubles Bond Buyback Size as 30-Year Yields Hit Post-2007 Highs

Summary

US Treasury Secretary Scott Bessent doubled the size of Treasury buyback operations for 10 to 30 year bonds to at least 4 billion dollars around late August. The move came shortly after 30 year Treasury yields climbed to their highest levels since 2007. Officials described the expanded buybacks as intended to keep the market in equilibrium. Financial analysts have expressed concern about the combination of heavy government borrowing and rising yields occurring at the same time. They warned that this combination points to a potential sovereign debt crisis.