US Treasury announces first buyback scheme in decades to boost liquidity

Financial Times/Kate Duguid/4-4-2023

“The programme would allow the Treasury to buy back older bonds, which are typically harder to trade, from primary dealers — banks that act as market makers for the Federal Reserve — and help improve functioning in some corners of the market.”

USAGOLD note: Being practical business folk, it is difficult for us to understand how an entity that borrows monthly to pay its bills can find the money to repurchase prior debts. Isn’t that a bit like paying off one credit card by drawing on another?