primeearn.verse
06/10 03:20
The US Treasury Department has launched an unprece
The US Treasury Department has launched an unprecedented program
In a move not seen in decades, the U.S. Treasury Department has launched a historic $10 billion bond buyback – the largest in history – targeting securities maturing between mid-2025 and mid-2027.
The strategic buyback is aimed at more effective management of the government debt, especially in the context of continued interest rate increases, which make lending more expensive.
Such bond buybacks allow the Treasury to proactively pay down some of its debt before it matures. This approach not only helps reduce long-term interest obligations, but also gives the department flexibility in shaping its overall debt structure. The timing is not coincidental: yields have risen due to the Federal Reserve’s policy of keeping interest rates higher for longer, which puts pressure on borrowing costs.
Earlier this year, Treasury Secretary Scott Besant played down concerns that foreign entities were behind the recent bond market turmoil. Instead, he pointed to domestic factors, particularly the exit of leveraged traders. He also left the door open for future buybacks, signaling that the Treasury was prepared to expand its operations if the need arose.
Asked whether the department was coordinating with Federal Reserve Chairman Jerome Powell on contingency plans, Bessant flatly rejected the idea of an imminent danger. “We’re nowhere near a crisis mode,” he told Bloomberg in April, adding that the current measures are part of prudent debt management, not emergency action.
To put the scale into perspective, the last time the Treasury conducted a major buyback was in 2000, when it bought just $3 billion worth of bonds. The latest effort underscores how dramatically the situation has changed amid continued inflation, rising yields, and tightening monetary policy.
#Check In Daily, Win Prizes Daily — Join the Fun!#Share Your Thoughts on Popular Assets in June#Claim1,200 USDT in the Monthly Creation Challenge
1Share
All Comments0LatestHot
No records