US Treasury Secretary Bessent says, on buyback announcement, we are trying to signal this is a thinly traded area in the market; notes sizes could be more than USD 4bln

Markets/Economy We have a big toolkit, "we will see" when asked about reversal in yields. Part of it is signalling. 30-year liquidity is very poor. Will announce increased focus on fiscal consolidation. Think market has got a little ahead of itself. Treasury and Fed would work together if any change in balance sheet. Rates have nothing to do with buyback decision. We would adjust to any kind of Fed bond runoff. Dollar has been very stable. Inflation expectations moved down. Still have strong dollar policy. Atlanta Fed 4.0% figure is noisy. Underlying economy is very strong. Biggest threat to financial stability is a lack of growth. Asked how far are you willing to go on buybacks - says we will see what conditions are, will analyse them, and see whether more action is needed. Need to focus on fundamentals. We are trying to keep market in equilibrium. Corporate issuance is yield agnostic. On corporate issuance, he would consider increasing issuance in the 5-year (as a company). Debt Nothing magic about USD 40tln figure. We can grow our way out of the debt burden. Expects 2026 tariff income will be similar to 2025. Deficit temporarily worse due to tariff refunds. Very good chance we have seen peak deficit. Global growth is how to get out of debt burden. Calling on rest of world to do the same. Inflation Goods and services inflation is down. Wage inflation also down. Not seeing second round effects. Markets point to lower inflation in the future. Labour Does not mean to produce as many jobs amid slowdown in immigration. US job numbers are quite noisy. Iran Press conference will be on Monday to discuss actions. We have control of Strait. Maximum economic pressure means likely not a kinetic restart. Will be coordinated economic isolation. Can continue getting ships out via the southern route. Will squash Iran's economy. Will collapse the regime. If countries insist on doing business with Iran, US will enforce actions against them. We have a blockade, and will have toughest sanctions in history. On China and Iran, says we are going to collapse this regime. Oh China and Iran, says China get 50% of oil from the gulf - they best get with the programme.