started · updated
US Treasury doubles long-term bond buybacks to address surging yields
The US Treasury has announced it will double its long-term debt buyback capacity, increasing the maximum size from $2 billion to at least $4 billion per auction for 10- to 30-year bonds. Effective September 9, the move is intended to improve liquidity in longer-dated securities following a period of surging yields.
This intervention comes as the 30-year Treasury yield recently hit 5.323 percent, its highest level since 2007, and US federal debt surpassed $40 trillion. The policy has highlighted a growing divergence between the Treasury and the Federal Reserve. While Treasury Secretary Scott Bessent is using buybacks to address what the department views as dislocated yields, Fed Chair Kevin Warsh has signaled a preference for market independence, viewing higher long-term rates as a return to normalcy.
The announcement has also triggered debate among market observers. Some, like author Robert Kiyosaki, have criticized the move as a form of monetary expansion that could weaken the US dollar and drive inflation. Meanwhile, the selloff in bonds has been part of a broader global trend, with yields rising in Japan, Germany, and France.
Entities
Federal Reserve · Kevin Warsh · Robert Kiyosaki · Scott Bessent · U.S. Treasury · US Treasury · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The US dollar fell to a three-month low against several major currencies. goldseek.com
- [● 2 SOURCES] Robert Kiyosaki claims the Treasury buyback program is a form of monetary expansion that creates “fake dollars” and fuels inflation. coinpaper.com
- [○ 1 SOURCE] Federal Reserve Chair Kevin Warsh views higher long-term rates as a return to market normalcy. cryptobriefing.com
- [● 4 SOURCES] The US Treasury will double its long-term debt buyback capacity from $2 billion to at least $4 billion per auction starting September 9. thecherrycreeknews.com · coinpaper.com · cryptobriefing.com
- [○ 1 SOURCE] Global bond yields have risen, with Japan’s 10-year yield reaching a 30-year high. thecherrycreeknews.com
- [● 2 SOURCES] US federal debt has surpassed $40 trillion. goldseek.com · coinpaper.com
- [● 2 SOURCES] The Treasury describes the buyback expansion as a liquidity measure rather than quantitative easing. coinpaper.com
- [● 2 SOURCES] The 30-year US Treasury yield reached 5.323 percent on August 18, its highest level since 2007. thecherrycreeknews.com · cryptobriefing.com