Simulating debt management operations, duration extraction, and bond price vs. yield shifts following Scott Bessent's Treasury buyback directive.
Yield Curve Shift
-18.5 bps
Avg Price Change
+1.42%
Net Duration Removed
4.12 yrs
Monthly Absorption
$60.0B
Yield Curve & Secondary Bond ValuationBaseline vs. Buyback Adjusted
Baseline Yield
Post-Buyback Yield
Secondary Bond Price ($)
Tenor
Base Yield
Sim Yield
Shift (bps)
Price ($/100)
Buyback ($B)
Inverse Price-Yield Mechanic: Direct Treasury market purchases reduce available bond supply in private hands. As Treasury bids aggregate demand, bond prices rise ($100 par increases), which mathematically depresses the running yield-to-maturity (YTM).
Policy & Purchase Parameters
Total Monthly Buyback Pace$60 B/mo
1Y Bills Allocation10%
2Y-5Y Belly Notes30%
10Y Benchmark Notes40%
30Y Long Bond20%
Market Impact: Belly to long-end yields contract as concentrated purchasing increases secondary bond prices, while expanded T-bill issuance steepens front-end term spread.