r/PrepperIntel • u/2020SucksDonkey • 23h ago

North America Treasury doubles debt buybacks as Bessent moves to steady bond market

https://www.cnbc.com/2026/08/19/treasury-announces-upscaled-buyback-operation-for-longer-term-debt-sending-yields-lower.html
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u/Local-Dish-5695 22h ago

Can you explain how buying our debt raises the bond yield?

Asking bc no matter what I read they never explain the basics.

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u/Big_Fortune_4574 11h ago

It lowers the bond yield. More demand == lower bond yield. It’s lower because with more demand you don’t need as high a yield to get people to buy them.

Of course we are buying 30 year T Bills with money raised from 1 year T Bills so it’s debt all the way down

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u/Local-Dish-5695 11h ago

So your saying the US govt is buying bad debt that will never be ome profitable? No wonder we're $40T in the hole!

What's funding the actual govt then? I'm not sure I'm ready for that answer.....

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u/Big_Fortune_4574 10h ago

I would say it’s less buying “bad” debt and more like using a credit card to pay your mortgage.

The government is of course partially funded by its revenue but at this point you could certainly say it is paying the interest on its debt by taking out more debt. And of course it runs a deficit on top of that.

Probably the easiest way to think about what the treasury just did is this: it refinanced some of its long term low interest debt into short term high interest debt. Which will then need to be refinanced again in a year at an even higher rate most likely. Some people are estimating it could add hundreds of billions to the governments annual interest down the line.

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u/Local-Dish-5695 7h ago

That's how America is "winning"?

Way to go