Treasury Secretary Scott Bessent Doubles 30-Year Bond Buybacks

Treasury Secretary Scott Bessent pledged to at least double the buybacks of 30-year Treasuries to dampen surging sovereign borrowing costs. The initiative follows a rise in the 10-year Treasury note yield to 4.7%, a trend driven by expectations of stronger economic growth and a multi-trillion-dollar investment boom in artificial intelligence.

The U.S. government is currently managing significant fiscal fragility, with total debts reaching approximately 100% of GDP and annual interest payments exceeding $1 trillion. This financial pressure is compounded by a budget deficit surpassing 6% of GDP and projected funding shortfalls for Medicare and Social Security by 2032 and 2033.

While the buyback strategy has provided temporary relief to yields, critics argue the move may increase reliance on shorter-term debt refinancing. Some observers further claim the strategy undermines the reputation of the Treasury for maintaining predictable debt issuance.