Treasury Secretary Scott Bessent stated that a debt buyback program could exceed the previously announced upper limit of $4 billion.
In an interview with CNBC, he mentioned that current yields do not reflect market fundamentals and that liquidity, especially in the 30-year bond, is weak.
"We're going to increase the size of the buyback," he said. "It could be more than the $4 billion per issue." Bessent also noted that the current yield levels do not factor into the buyback decision.
He acknowledged the pressures at the longer end of the curve, stating that current trading levels do not reflect economic conditions.
Multiple factors have contributed to rising yields, including surging debt and deficits in the U.S. and competition from other sectors.
Bessent also mentioned that he will be meeting with Russell Vought to discuss fiscal consolidation. The national debt crossed the $40 trillion mark this week.
