Treasury buybacks expected to reach $8 billion as Bessent faces criticism

  • Treasury announced an expanded bond buyback program targeting long-term U.S. debt.
  • $8 billion or more could be involved, potentially doubling initial estimates.
  • Bessent defended his Japanese yen strategy during a Tuesday Dallas interview.

Treasury Secretary Scott Bessent’s remarks about having an edge over traders have intensified criticism of an expanded bond buyback program that could reach $8 billion or more. Financial commentator Bob Elliott called the policy "Activist Treasury Buybacks," while billionaire investor Stanley Druckenmiller criticized Bessent’s efforts to manually lower yields. Bessent also warned traders against betting against his efforts involving the Japanese yen, citing insight into Japanese policymakers and the Bank of Japan. Investors are watching the buyback’s effect on the yield curve (the relationship between bond yields and maturities), after an earlier announcement coincided with a 20% Bitcoin surge and affected gold. Analysts warn repeated interventions could create pressure for increasingly large market support. U.S. Treasury yields stood at 5.25% for the 30-year bond, 4.81% for the 10-year and 4.41% for the two-year, while long-duration Treasury securities and major equity ETFs posted mixed results.

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Treasury buybacks expected to reach $8 billion as Bessent faces criticism - CoinPost Terminal