Secretary of the Treasury Scott Bessent announced Wednesday that the department will double its bond buybacks this fall. File Photo by Bonnie Cash/UPI | License Photo
Aug. 19 (UPI) -- The U.S. Treasury Department announced Wednesday that it will buy back about twice the usual amount of its bonds in a move to prevent rising interest rates on mortgages and consumer loans.
The department, which is led by Secretary Scott Bessent, said it will target the 10- to 20-year and 20- to 30-year portion of the market. Those bonds have faced a buyers' strike since late June, CNBC reported.
Treasury said it will at least double the maximum size of its usual buyback, from $2 billion to "at least" $4 billion, an announcement from the department said. The buyback operation will be from Sept. 9 through Nov. 4.
The yields on longer-term debt have been at their highest levels since 2007, pushed up by war with Iran and other concerns, such as growing competition for financing with borrowers and growing federal deficits, Politico reported.
