The U.S. Treasury is set to announce the cap on long-term bond buybacks on Wednesday, with Wall Street predicting a maximum of $10 billion, though doubts remain about its ability to reverse selling pressure at the long end of the curve.
U.S. Treasury Secretary Scott Bessent announced in mid-August that the scale of long-term Treasury buybacks would at least double. The Treasury Department is expected to announce the maximum size of this operation on Wednesday and officially conduct 10-year to 20-year Treasury buybacks on Thursday. Wall Street institutions show significant divergence in their predictions for the size of a single buyback, with Morgan Stanley estimating up to $10 billion, JPMorgan Chase expecting $6 billion to $8 billion, and Barclays predicting slightly over $4 billion. However, several institutions remain reserved about whether the buybacks can substantially improve the supply-demand situation in the long-end bond market. Bank of America noted that Bessent's expanded buyback plan has "done little to bring buyers back into the Treasury market" so far.
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Source:华尔街见闻 · Source Link
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