Prof G Markets · Thursday, September 3, 2026
The effectiveness of Treasury buyback strategies to lower borrowing costs in America is questioned, with one expert noting that such actions could involve exchanging lower-interest debt for higher-interest debt. This is seen as a form of active management by the Treasury.
“But Scott Bessant has tried to fix it. And he tried to fix it with buybacks, uh, and it didn't really work. Or maybe it did for a couple of days and then it didn't.”
“And whenever he decides he's going to buy back those bonds, what is effectively doing is he's buying those back and he is exchanging what was at a lower interest rate for something at a higher interest rate.”
“So that could be good if rates fall, but it looks a little bit like active management to me, which is an interesting role for the Treasury to be in.”