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The U.S. government has bought back almost $200 billion in debt this year, according to an Epoch Times review of Treasury Department data.
A Treasury debt buyback occurs when the federal government repurchases its outstanding bonds before maturity, removing older securities from circulation and issuing new debt in their place.
The approach may seem counterintuitive, since a sizable share of current debt was issued at historically low interest rates, and new debt is being issued at today’s higher rates.
But the Treasury’s strategy is twofold: to smooth maturity profiles to mitigate future refinancing spikes and to improve liquidity in the bond market….
A Treasury debt buyback occurs when the federal government repurchases its outstanding bonds before maturity, removing older securities from circulation and issuing new debt in their place.
The approach may seem counterintuitive, since a sizable share of current debt was issued at historically low interest rates, and new debt is being issued at today’s higher rates.
But the Treasury’s strategy is twofold: to smooth maturity profiles to mitigate future refinancing spikes and to improve liquidity in the bond market….
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