- Treasury Secretary Scott Bessent surprised markets with an August decision to upsize purchases of older securities, a move traders had not expected.
- The purchases were a response to surging US yields, which were a sore spot for an administration that promised lower borrowing costs.
- The intervention initially lowered yields but departed from the Treasury's long-standing approach of being regular and predictable in pursuing the lowest debt costs over time.
- The Treasury is set to update its debt management plans in November, and Wall Street expects key clues to surface Friday.
Quotes
“regular and predictable”