U.S. Treasury Secretary: Debt Buyback Cap Could Exceed $40 Billion

BlockBeats News, August 20th, U.S. Treasury Secretary Benson commented on the bond repurchase issue, stating that the single repurchase amount (ceiling) may exceed $40 billion, partly signaling intent.

We want to emphasize that the yield does not necessarily reflect the fundamentals. At the same time, there may be an announcement to intensify fiscal consolidation efforts, and we have most likely seen the peak deficit. In terms of the debt figure, the $40 trillion debt figure does not carry any particular significance. The market may be overreacting. If there are any changes to the balance sheet, the Treasury Department and the Fed will collaborate. It should be noted that the interest rate is unrelated to the repurchase decision.

Regarding the inflation outlook, Benson indicated that market indicators suggest a future downward trend. As for the Iranian economic sanctions, Benson stated that a press conference will be held next Monday to discuss related actions.