Bessent plans to repurchase US Treasuries and adjust the issuance structure to curb yields.

TechFlow reports on August 25 that, according to Jin10 Data, US Treasury Secretary Bessent plans to intervene in the long-end bond market through measures such as US Treasury buybacks, increased short-term bond issuance, and the potential cancellation of 20-year Treasuries. This move aims to prevent short-selling funds from pushing the 10-year US Treasury yield to climb to 5%, and to guard against high interest rates stifling economic growth ahead of the midterm elections.

Sources emphasize that the above plan is a short-term response strategy. Wall Street analysts point out that the current total US debt has reached $40 trillion, and AI infrastructure development is intensifying the competition for capital. In the long term, the Trump administration is expected to maintain an expansionary fiscal policy, planning to rely on economic growth and increased tax revenues to alleviate debt pressure, rather than implementing fiscal austerity that could trigger a recession.