The Treasury announced it will at least double its bond buyback operations starting September 9, with each intervention hitting at least $4 billion. Mark Moss breaks down what the increase means and why the timing matters.
The U.S. Department of the Treasury announces increased sizes of nominal long-end— long-end, so 30-year— long-end liquidity support buybacks beginning September 9th. So first of all, starting September 9th— I don't know when you're watching this video, but that hasn't started yet. September 9th is in the future, so nothing's actually happened. They just announced it. This was August 19th. Okay, increasing by at least double— not just increasing a little bit. They're, they're already planning to not resume it not increase it, increase it by at least double, double the size of liquidity support buyback operations and for longer-dated Treasuries. Okay, at least $4 billion per operation, per intervention, not $4 billion total, just per operation. And this is effectively again September 9th.
