US Treasury to double buybacks of long-term government debt
Sharp sell-off in recent weeks has sent borrowing costs soaring
Source: Financial Times
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DW NOTE
The Treasury is doubling long-term debt buybacks because it has to — yields are spiking and someone needs to be the buyer of last resort. With the federal deficit already $1.4 trillion through June and interest rates unchanged all year despite inflation well above target, the government is now monetizing its own debt to suppress borrowing costs. When the issuer becomes the primary purchaser, that's not a market.