Bessent says Treasury buyback operation could be more than $4 billion

Summary

Treasury Secretary Scott Bessent explains the Treasury's increased long-end buybacks, saying they may exceed $4 billion per issue and are meant to signal that long-term yields do not reflect fundamentals. He emphasizes poor 30-year liquidity and points to coming fiscal consolidation, stable tariff revenue, and likely peak deficits. Bessent also makes cryptic comments about U.S. participation in Japan's yen intervention and a possible Treasury twist in the bond market.

• Treasury increased buyback limit on longer-dated securities.
• Bessent says the buyback could exceed $4 billion per issue.
• He argues 30-year Treasury liquidity is poor and yields don't reflect fundamentals.
• He signals increased focus on fiscal consolidation and likely peak deficit.
• He highlights temporary tariff refunds and stable 2026 tariff income.
• He suggests the market should question U.S. involvement in Japan yen intervention and mentions a Treasury twist.