Bostic Says U.S. Treasury Buybacks Haven’t Started, Policy Signal Questioned Repeatedly

BlockBeats News, August 25th. During the "Economic D-Day" press conference, US Treasury Secretary Yellen did not provide further signals on US debt operations. Previously, due to the 30-year Treasury bond yield hitting its highest level since 2007, Yellen unexpectedly announced an expansion of the long-term Treasury bond repurchase size. According to the plan, from September 9th to November 4th, the minimum amount per repurchase will increase from $20 billion to $40 billion.

When asked if the repurchase will be further expanded, Yellen responded: "We haven't even bought a single bond yet, the next operation will wait until September 9th." Just recently, he hinted that the repurchase size might exceed the newly set lower limit, but his latest statement appears to have moderated his stance.

Analysts pointed out that Treasury bond repurchases are essentially a routine and predictable debt management tool, not an emergency measure to address market pressure. Yellen previously claimed to have a "whole set of tools" to stabilize the bond market, leading to speculation that the Treasury Department may reduce the issuance of long-term Treasury bonds. As for whether the long bond auction size will be reduced, Yellen stated that the Treasury Department will "proceed with the regular issuance plan" and hinted that specific arrangements will be announced in the next quarter's refunding announcement.