Treasury Secretary Bessent Expands US Debt Buybacks, Called "Playing with Fire" — US May Repeat Japan-Style Currency Depreciation

Odaily News — After the US announced this week that it would expand Treasury buybacks, triggering sharp market turbulence, investors have begun drawing comparisons with Japan's policies. Measures Japan took in the past to压低 borrowing costs led to a prolonged weakening of the yen. The dollar is currently at a three-month low and is on track for its worst weekly performance this month. The US Treasury unexpectedly announced midweek that it would double the size of its longer-dated Treasury buyback program.

Robin Brooks, a senior fellow at the Brookings Institution, said the US government's move is the "clearest signal" yet that the US is following in Japan's footsteps toward currency depreciation. He said the US government is "playing with fire." US Treasuries initially rose after the announcement but have since given back those gains. Gold and other precious metals moved higher. Steven Barrow, head of G10 strategy at Standard Chartered, said that using buybacks to压低 bond yields would only add further pressure on the dollar without addressing the root cause driving yields higher — namely, the fiscal deficit. (financemagnates)