Bessent Says Treasury Bond Buybacks Could Exceed $4 Billion Limit

Treasury Secretary Scott Bessent said Thursday that the government’s accelerated debt buyback program could grow beyond the previously announced $4 billion cap per issue. Speaking to CNBC, Bessent said the Treasury plans to actively support longer-dated securities where yields have been climbing sharply.

Yields Briefly Dip Then Rebound

His comments came a day after Treasury doubled its scheduled buybacks for longer-dated debt from $2 billion, a move that initially pushed yields lower. The 30-year bond, recently trading near levels last seen before the 2008 financial crisis, sat around 5.235%, while the 10-year yield ticked up about 5 basis points to 4.704% after briefly easing during Bessent’s remarks.

Focus on Fundamentals, Not Headlines

Bessent said the size of future buybacks will depend on market conditions rather than a fixed target, emphasizing the goal is to keep markets focused on economic fundamentals rather than short-term headlines during a period of thin trading. He also described liquidity in the 30-year bond market as particularly weak, adding further justification for intervention.

Multiple Pressures Pushing Yields Higher

Rising yields have been driven by several factors, including expanding US deficits, competition from corporate debt tied to AI investment, higher yields from other countries like Japan, and growing term premiums demanded by investors.

National Debt Crosses $40 Trillion

The comments come as Treasury data confirmed the national debt surpassed $40 trillion this week. Bessent downplayed the significance of the figure, saying the US can grow its way through the debt burden, and noted he plans to meet with OMB Director Russell Vought to discuss fiscal consolidation.