Bloomberg Surveillance · Friday, September 25, 2026
The market is analyzing the limited scope of Treasury Secretary Scott Besson's recent bond buybacks, noting that the amounts purchased were less than initially offered and focused on illiquid bonds. This approach is seen as not aggressive enough to significantly drive down yields, suggesting a more cautious strategy than a full-fledged effort to lower borrowing costs.
“He said it's a buy up to $ 6 billion worth, but they're only looking to buy the illiquid bonds, and they're not looking to pay through the market, right?”
“If you're really trying to drive bond yields lower, you buy through the market, especially if we're at the highest yields ever. So this is still kind of tweaking at the nuances, like, oh, this bond's illiquid. We can take it out of your portfolio so maybe we can buy something liquid. This is not all in trying to get the yields down.”