US Treasury Secretary: US Treasury bond repurchases aim to calm market "frenzy"
48 minutes ago
U.S. Treasury Secretary Scott Bessent said last month’s expansion of the U.S. Treasury’s repurchase program was aimed at calming the "frenzy" building in the bond market and pushing prices back to equilibrium. Bessent noted that while he cannot alter the market’s equilibrium price, he hopes to curb excessive speculation. He added that if investors were truly concerned about U.S. debt credit, they would sell U.S. Treasuries and buy German bunds, though current market behavior does not reflect such concerns. Bessent denied that the Treasury’s repurchase of Treasuries is equivalent to the Federal Reserve’s quantitative easing, explaining the measure is more similar to the Fed’s past "Operation Twist". The program’s expansion comes against the backdrop of the U.S. 30-year Treasury yield hitting its highest level since 2007.
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