Treasury Is Buying Back Bonds and the Dollar Pays for It

Treasury buybacks are pitched as a liquidity measure, but if markets read them as a cap on long end yields, the U.S. dollar does the adjusting. David Scutt, StoneX Media Senior Market Analyst for Global Macro, breaks down the expanded buyback program and why the signal matters more than the size. U.S. public debt has now topped $40 trillion, with debt held by the public already around 100% of gross domestic product and net interest costs projected to climb, according to the independent Congressional Budget Office. Long dated Treasury yields have been pushing back toward cycle highs, and the market is being asked to absorb an ever growing supply of debt on supply and demand alone. Because the United States runs a persistent current account deficit and a deeply negative net international investment position, it relies on foreign capital continuing to arrive, and yields are one of the main things attracting it. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_david_scutt&utm_content=share 00:00 - Debt Spills Into the Dollar 00:34 - U.S. Debt Tops $40 Trillion 01:02 - Buyback Math Is Still Small 01:28 - Foreign Capital Calls Shots 01:58 - Lower Yields, Less Reward 02:28 - Not Yield Control, Not Yet Like and subscribe for more financial market insights. #Treasuries #StoneX #DavidScutt #Forex