MNI: US Treasury Studying Potential Buybacks To Help Liquidity

The U.S. Treasury Department said Wednesday it is studying potential programs to buy back debt with cash or new issuance to support Treasury market liquidity.

"Treasury expects to share its findings on buybacks as part of future quarterly refundings," Josh Frost, Treasury's assistant secretary for financial markets, said in a statement in the agency's quarterly refunding. "Treasury has not made any decision on whether or how to implement a buyback program but will provide ample notice to the public on any decisions."

The Treasury Borrowing Advisory Committee, a group of banks and investors that advise the government on its funding, said in a report buybacks could be additive to market liquidity or could be a useful cash management tool but recommended additional information gathering.

The Treasury last conducted buyback operations between March 2000 and April 2002.