U.S. Debt Buyback Plan Size to Be Announced Amid High Market Tensions

ME News reports that on September 9 (UTC+8), U.S. Treasury Secretary Bentsen will announce the specific scale of the expanded federal debt buyback program. As the government actively takes measures to curb rising long-term borrowing costs, Wall Street is closely monitoring developments. On Tuesday, Bentsen defended these interventions, describing recent market sell-offs as a speculative rally requiring public policy intervention, and stated that as Treasury Secretary, his goal is to restore market balance—not to determine long-term market interest rates. Financial institutions are closely watching the upcoming announcement of the buyback scale, with market expectations generally centered around $5 billion to $6 billion. With the 10-year U.S. Treasury yield remaining near its highest level since 2023, market risks remain elevated. The 10-year yield directly influences domestic mortgage rates and corporate debt financing costs. Economists warn that if the buyback scale is set at only $4 billion, it could disappoint investors and reignite selling pressure; conversely, if the target is significantly higher, it may signal to markets that the U.S. government views market instability as even more serious. (Jinshi) (Source: ODAILY)