- US Treasury announces first buyback scheme in decades to boost liquidity in $23tn government bond market.
- Buybacks will allow the Treasury to buy back older bonds from primary dealers and help improve functioning in some corners of the market.
- The programme is expected to start next year and it is not expected to interfere with the Fed's efforts to shrink its balance sheet.
- The announcement was part of a broader release from the Treasury department detailing its borrowing plans for this quarter.
- Some analysts and investors were surprised at the timing of the announcement as the White House and Republicans clash over the debt ceiling.
Financial Times — World — US Treasury Buyback Scheme — Us Treasury Bonds — Us Department Of The Treasury — Kate Duguid
US Treasury announces first buyback scheme in decades to boost liquidity
The US Treasury department will repurchase US government debt next year for the first time in decades, in an effort to boost liquidity in the $23tn government bond market and improve functioning in some corners of the market.