Wealthion · Thursday, September 10, 2026
Michael Green suggests that the Treasury's buyback plan presents an opportunity to shrink the US national debt. By issuing new bonds and retiring older, lower-coupon ones, the Treasury can reduce overall debt while potentially increasing the price of existing debt.
“Ironically, that's an opportunity set for the Treasury and I think the Treasury is starting to recognize that saying, wait a second, we can issue $1 of current coupon paper and retire $2 of low coupon paper that has a modest increase in our cash interest expense, but in aggregate, we are significantly shrinking the debt.”
“So I believe that Scott Besson has now recognized that he has an opportunity to shrink the US national debt at the same time that he begins driving the prices of that national debt higher and attracting that marginal buyer with greater intensity.”