US Treasury Secretary Scott Bessent Comments on the Bond Market
Bessent emphasized that despite the bond buyback operation driving yields higher, there are no issues in the market and the situation is doing very well.
US Treasury Secretary Scott Bessent dismissed concerns that emerged after bond yields reached their highest levels in recent years following the bond buyback operation.
Market Situation Assessment
US Treasury Secretary Scott Bessent dismissed market concerns following Thursday's bond buyback operation, which pushed yields higher.
Bessent stated that the US Treasury market is generally in very good shape and is exhibiting strong performance compared to other markets.
Bond Auctions and Buyback Process
Highlighting that the results of two bond auctions held in recent days were strong, Bessent stated that the Treasury only buys back bonds when they are cheap.
Although the purchase of up to $6 billion in bonds was announced on Wednesday, only $5.19 billion worth of purchases were made in Thursday's operation.
Bids and Yield Levels
Officials noted that while they typically receive about $20 billion in bids during normal periods, bids remained at approximately $10 billion in this operation.
During this process, 2-year Treasury yields reached their highest levels since 2024, and 10-year yields since 2023.