Bessent Doubling The Treasury Buyback Program Is Just A Deck Chair Trade

Michael Gray 2.93K Followers Follow Summary The U.S. Treasury, under Secretary Bessent, unexpectedly doubled its long-maturity buyback program, briefly driving yields lower before they rebounded. I view this buyback expansion as a 'Deck Chair Trade'—inconsequential relative to the $32 trillion Treasury market and ineffective at addressing surging yields. The buyback program is not quantitative easing; it simply swaps old bonds for new, ones without injecting liquidity or materially impacting demand or rates. Bessent’s reactive, hedge fund-like tactics signal panic amid record debt, rising deficits, and global pressures but lack substantive measures to address core fiscal issues. welcomia/iStock via Getty Images Bessent Surprises The Market By Doubling The Treasury Buyback Program Last Wednesday the U.S. Treasury announced that they would double the size of their buyback program for longer-maturity Treasury Securities. Beginning September 9 th , Treasury This article was written by Michael Gray 2.93K Followers Follow Michael Gray has devoted his career to following the capital markets and managing fixed income assets. He founded Gray Capital Management LLC and before that was Head of Taxable Fixed Income at Fidelity Investments. Michael has an MBA in Finance from Wharton and a BA in Economics from Union College. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.