Bessent Says Regular Treasury Auctions to Continue, Offers No Signal on Further Market Steps

US Treasury Secretary Scott Bessent declined to say whether the government is considering additional steps to support the bond market after recently announcing a larger buyback program aimed at curbing the rise in long-term Treasury yields.

Asked at a press conference on August 24 after the announcement of sanctions on Iran whether the Treasury was reviewing a cut in long-dated Treasury auction sizes, Bessent said it would continue its regular auction program. Any decision on auction sizes will be made as scheduled in the next quarterly refunding announcement, he added.

The remarks come as some market participants have raised the possibility that the Treasury could go beyond expanding buybacks and also reduce long-term issuance after moving to contain the rise in long-dated yields.

Bessent also offered little when asked whether the Treasury plans to further increase the size of its buybacks. "We haven't bought back a single bond yet," he said. "The next buyback is September 9."

The Treasury said on August 19 that it would at least double the size of buybacks intended to support liquidity in long-dated securities. The measure will take effect on September 9.

Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com