🇺🇸 US TREASURY MOVES TO PROP UP ITS OWN DEBT MARKET
The US government is now paying over $3 billion a day just to service its national debt — more than it spends on healthcare for its elderly (Medicare).
This week, US long-term borrowing costs hit their highest level in nearly two decades, as global investors grew increasingly unwilling to keep lending Washington money at current rates. Investors had reportedly tried offloading close to $20 billion in long-dated bonds, far more than the government was willing to buy back.
In response, the Treasury announced it will double the size of its long-term bond buyback operations — from $2 billion to "at least" $4 billion per operation, starting September 9th. The vague, open-ended wording ("at least") is notable in itself: it suggests officials aren't confident this number will be enough.
Even more telling, Treasury said it will share more details on future buyback sizes at its next scheduled update on November 4th — a signal that this is not a one-off move, but the start of an ongoing effort to manage a debt market under real strain.
This is not debt relief. Washington isn't paying down what it owes — it's simply reshuffling which bonds are in circulation to calm markets. Total US debt is nearing $40 trillion and climbing every day.
The takeaway: even the US government is now openly admitting it needs to step in to keep its own debt market from spiraling.
@DDGeopolitics
#FiatCurrency #USTreasury #USDebt
#USTreasureBonds
The US government is now paying over $3 billion a day just to service its national debt — more than it spends on healthcare for its elderly (Medicare).
This week, US long-term borrowing costs hit their highest level in nearly two decades, as global investors grew increasingly unwilling to keep lending Washington money at current rates. Investors had reportedly tried offloading close to $20 billion in long-dated bonds, far more than the government was willing to buy back.
In response, the Treasury announced it will double the size of its long-term bond buyback operations — from $2 billion to "at least" $4 billion per operation, starting September 9th. The vague, open-ended wording ("at least") is notable in itself: it suggests officials aren't confident this number will be enough.
Even more telling, Treasury said it will share more details on future buyback sizes at its next scheduled update on November 4th — a signal that this is not a one-off move, but the start of an ongoing effort to manage a debt market under real strain.
This is not debt relief. Washington isn't paying down what it owes — it's simply reshuffling which bonds are in circulation to calm markets. Total US debt is nearing $40 trillion and climbing every day.
The takeaway: even the US government is now openly admitting it needs to step in to keep its own debt market from spiraling.
@DDGeopolitics
#FiatCurrency #USTreasury #USDebt
#USTreasureBonds