Bessent says Treasury auctions will continue as usual despite expanded buyback program

Live updates

1. 21d ago

   Treasury to maintain auction schedule amid expanded bond buybacks

   Scott Bessent confirmed that U.S. Treasury auctions will proceed as scheduled despite the implementation of an expanded bond buyback program. A new buyback structure for longer-dated securities is set to take effect on September 9. While the Treasury intends to stick to its debt auction timeline, reports suggest Bessent may utilize nearly $1 trillion from the Treasury General Account to fund these buybacks. This strategy aims to manage interest rates, though critics argue the approach may fail to satisfy bond market pressures.

   Why it matters

   The Treasury is attempting to lower interest rates by adjusting how it manages government debt. This involves balancing the issuance of new bonds through auctions with the purchase of existing securities to stabilize the market.

   What is confirmed

   • Treasury auctions will continue as scheduled despite an expanded buyback program.
   • A new buyback structure for longer-dated securities takes effect September 9.

   Still unconfirmed

   • Bessent could use nearly $1 trillion from the Treasury General Account to fund bond buybacks.
   • Stanley Druckenmiller, a former mentor to Bessent, believes bond buys are a mistake and that Bessent will lose his battle with bond markets.

   What to watch next

   • Implementation of the longer-dated securities buyback structure on September 9.
   • Market reaction to the first set of auctions following the buyback expansion.
   Sources used for this update (10)

   1. Bloomberg.com — Bessent Has No Easy Fix for What’s Really Driving Bond Yields Up
   2. www.foxbusiness.com — FOX BUSINESS
   3. CNBC — Bessent could tap near $1 trillion Treasury General Account to fund bond buybacks, sources said
   4. The New York Times — What’s Behind the U.S. Treasury’s Latest Attempt to Lower Interest Rates
   5. The Economist — Is Scott Bessent the Fed chair Donald Trump always wanted?
   6. Fox Business — Bessent says Treasury auctions will continue as usual despite expanded buyback program
   7. Reuters — US Treasury to stick to debt auction schedule despite bigger buybacks, Bessent says
   8. Bloomberg — Druckenmiller, Bessent’s Early Mentor, Calls Bond Buys a Mistake
   9. The Guardian — US Treasury’s Scott Bessent ‘will lose’ battle with bond markets, former mentor warns
   10. finance.yahoo.com — Bessent says Treasury auctions will continue as usual despite expanded buyback program
   confidence 90%