Treasury doubles long-bond buybacks as Bessent says he is 'the house

Treasury at least doubled long-dated bond buyback maximums from $2 billion to $4 billion effective 9 September, with Secretary Bessent calling the policy "Treasury twist" and saying "I am the house now." The first enlarged operation took $5.19 billion of a $6 billion cap against $10.5 billion offered. Despite the signalling, the 30-year yield closed at 5.37 per cent on 10 September, above its 5.19 per cent level on announcement day. Dealers' funding shortfall forecasts have grown to $1.45 trillion for FY2027-28, while August refunding guidance shifted from "increases" to "changes" in auction sizes, read as room for smaller long-bond sales.

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