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Treasury Expands Debt Buyback as 10-Year Yields Rise

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Story summary
  • U.S. Treasury Secretary Scott Bessent expanded a debt-buyback after 10-year yields rose above 5%.
  • The Federal Reserve (Fed) is expected to raise its policy rate 0.25 point to 3.75-4.00%.
  • Fed Chairman Kevin Warsh signaled willingness to coordinate but rejected a direct bond-buying request.
  • Warsh wants the Fed’s balance-sheet holdings, $6.7 trillion, smaller.
  • Analysts say the Fed would buy bonds only in market-distress, which has not yet occurred.