B · Normal
[The U.S. Treasury Department is about to expand its Treasury bond repurchases; Wall Street expects the size of a single repurchase to be up to $10 billion] September 9th: After the U.S. Treasury Department announced in August that it planned to at least double the size of long-term Treasury bond repurchases, Wall Street interest rate strategists predicted that the Treasury Department would increase the size of the repurchases to a maximum of $10 billion each time. Morgan Stanley strategists said that based on the Treasury Department's existing cash balance management policy, assuming no additional funds are raised through the issuance of short-term Treasury bills, the Treasury Department's remaining seven long-term Treasury bond repurchase operations this quarter may reach a maximum of $10 billion each. The JPMorgan Chase team said that after expanding the scale of repurchases starting this week, each repurchase of US$6 billion to US$8 billion is expected. Barclays expects the size to be just over $4 billion. For Bessent's first operation after announcing the expansion of its repurchase plan in mid-August, the forecasts of various Wall Street institutions differ significantly, highlighting the market's great uncertainty about this week's repurchase operation. The Ministry of Finance is expected to announce preliminary information on Wednesday, including the maximum size of the repurchase, and will officially launch 10- to 20-year Treasury bond repurchases on Thursday.
Comments