US Treasury Open to Expanding Bond Buybacks Beyond $4 Billion, Says Scott Bessent

US Treasury Secretary Scott Bessent said the Treasury could raise bond buybacks beyond $4 billion and that interest rates do not affect this decision.

US Treasury Secretary Scott Bessent indicated on Thursday that the Treasury may increase its bond buyback program beyond the current $4 billion level. According to FX Street, Bessent clarified that the decision to expand buybacks is independent of prevailing interest rates.

This statement suggests a more flexible approach to managing the Treasury's debt portfolio, potentially impacting liquidity in bond markets. The buyback program is seen as a tool to help stabilize debt issuance and market functioning.

For Japanese investors, who closely monitor US Treasury activities for indications of global interest rate trends and risk sentiment, this development could influence FX and equity market dynamics in the region.

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By Sama Kane

Tokyo Overnight

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