The Treasury Buyback Experiment: Can the U.S. Government Really Lower Borrowing Costs?
Introduction The U.S. Treasury has taken an unusual step to address rising long-term borrowing costs: buying back outstanding Treasury bonds. The move comes as long-term yields have risen sharply, with the 30-year Treasury yield recently reaching levels not seen since 2007. On August 19, the Treasury announced that it would double the size of certain…