US Treasury preparing historic bond market intervention including increased buybacks and potential use of General Account reserves to suppress yields amid Fed rate-cut constraints.
Macro & Markets ·
The US Treasury is preparing multiple measures to suppress bond yields, including doubling buyback operations to $4 billion or more per transaction and potentially deploying its $950 billion General Account balance for purchases, according to reports citing Treasury Secretary Bessent's commitment to lower yields. Beyond increased buybacks, the intervention could extend to selling short-term debt and eliminating long-dated bonds. The escalating efforts reflect constraints on Federal Reserve rate cuts and represent what officials describe as necessary direct bond market intervention to reduce interest rates in the near term.