Bessent says buyback move aimed at quelling market ‘fever'

Treasury Secretary Scott Bessent Treasury Secretary Scott Bessent said his move last month to expand a buyback program for older US government securities was aimed at quelling a 'fever' in the bond market. 'My job is to try to push things back towards equilibrium,' Bessent said in answering questions at a Breitbart News event Tuesday in Washington. 'I don't believe that I can change the equilibrium price. But nothing's ever in equilibrium.' Bessent was speaking on the eve of the first scheduled buyback operation of longer-dated securities since his department last month announced a ramp-up of that program. That followed a rise in 30-year yields to the highest levels since 2007. 'There was like this fever that was building,' Bessent said. 'Having been in the financial markets, like when you're speculating, you want to speed things up,' he said, alluding to his career as a hedge fund executive. Bessent also rejected the idea that Treasuries have been dropping in recent weeks due to concerns about the scale of US borrowing. If that were true, Treasuries would be underperforming German securities, he indicated — saying that's not happening. Not QE 'If everyone was worried about the credit of the US, you would sell US bonds and buy German bonds — and it's the opposite,' Bessent said. 'We're the best performing.' The Treasury chief disputed critics who have suggested the Treasury's efforts amount to a version of quantitative easing — a bond-buying program that the Federal Reserve has turned to in past crises to stimulate the economy. 'I'm not doing QE,' Bessent said. He's instead referred to his initiative as a version of the Fed's old 'Operation Twist.'