Institutions: Market Closely Watches Size of US Treasury Buyback Plan, Wall Street Weighs Risks

Odaily News: US Treasury Secretary Bessent is set to announce the specific size of the expanded federal debt buyback plan. As the government actively takes measures to curb rising long-term borrowing costs, Wall Street is closely monitoring the developments. Bessent defended these interventions on Tuesday. He described the recent market sell-off as a speculative rally that requires public policy intervention, and stated that as Treasury Secretary, his goal is to push market conditions back to equilibrium, not to determine long-term market interest rates.

Financial institutions are closely watching the upcoming buyback size, with market expectations generally ranging between $5 billion and $6 billion. As the 10-year Treasury yield continues to hover near its highest level since 2023, market risks remain elevated. The 10-year Treasury yield directly affects domestic mortgage rates and corporate debt financing costs. Economists warn that if the buyback size is set at only $4 billion, it could disappoint investors and reignite selling pressure; while a significantly higher target size could signal to the market that the US government is more concerned about market instability. (Jin Shi)