Just now realized this, worth sharing. When Bessent buys heavily-discounted Covid-era long bonds instead of newer issues w/ higher coupons, he increases the margin to the debt ceiling. That's because, by the statute, the amount that must be held under the ceiling is the face amount. When he buys back a bond trading at 50 cents, he eliminates the full $1.00, and only has to issue 50 cents of new debt to do that.

Ultimately, it increases interest expense going forward

https://x.com/Jesse_Livermore/status/2103306813491839197