Treasury Buybacks Against a $40 Trillion Balance Sheet
Washington moved to calm the bond market this week. The calm lasted about a day. This week delivered three pieces of news that belong together. The US Treasury said it would roughly double the amount of older, long-term government debt it buys back from investors. In the same stretch of days, the total US national debt crossed $40 trillion for the first time. And just before all this, the interest rate on the government's 30-year debt had climbed to its highest level since 2007. Put plainly: borrowing costs were rising uncomfortably, the debt pile hit a milestone number, and the Treasury stepped in to try to steady things.
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