Bessent Says Regular Treasury Auctions Will Continue, Sidesteps Further Market Moves
Summary
- U.S. Treasury Secretary Scott Bessent said the government would continue its regular Treasury auction program when asked about the size of long-term Treasury auctions.
- After the Treasury said it would more than double the size of Treasury buybacks to curb the rise in long-term yields, Bessent declined to directly address any further plans for expanding buybacks.
- Bessent said, "We have not bought back a single Treasury yet," adding that the next buyback is on Sept. 9 and that the measure will take effect the same day.
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U.S. Treasury Secretary Scott Bessent declined to spell out any additional market measures after the Treasury recently announced plans to expand buybacks to help curb the rise in long-term Treasury yields.
Asked at a press conference on Aug. 24 following the announcement of sanctions on Iran whether the department was considering reducing long-term Treasury auction sizes, Bessent said the government would continue its regular Treasury auction program. Any decision on auction sizes will be made as scheduled in the next quarterly refunding announcement, he added.
His remarks came as speculation has grown over possible further cuts to long-term issuance after the Treasury moved to expand buybacks to support liquidity in longer-dated debt.
Bessent also did not give a direct answer when asked whether the Treasury planned to further increase the size of its buybacks. "We have not bought back a single bond yet," he said. "The next buyback is Sept. 9."
The Treasury said on Aug. 19 that it would more than double the size of Treasury buybacks aimed at supporting liquidity in longer-dated securities. The measure will take effect on Sept. 9.
Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com
Korea Economic Daily
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