So Bessent has decided he will play god in the FX and bond markets. The Treasury floated out at ‘more than $4 billion’ buyback last month and today we get the actual numbers. It’s a $6 billion figure and that looks to be a dissapointing one. Not only that it’s “up to $6 billion” so we have a limit.
There was talk of $10 billion, or even $12 billion.
The move will mean more t-bills and less long-dated Treasury supply in general, but not as much as feared. The 30-year is at a session high, up 3 bps to 5.29%.
I’m bid at 7%.
