The U.S. Treasury announced it will double the size of some debt buyback operations to at least $4 billion per session, targeting 10- to 30-year Treasury securities starting in September. The move aims to enhance liquidity in longer-dated debt markets amid elevated yields and strong investor demand.
Operations will commence on September 9 and run through November 4, aligning with the quarterly refunding window that allows repurchases of up to $69 billion across all maturities. Additional liquidity support from scheduled buybacks could bring total repurchases to $83 billion by early November. The Treasury’s next buyback for 20- and 30-year bonds is scheduled for September 24, followed by a 10- to 20-year operation on September 10.
The announcement follows a surge in Treasury yields, with the 30-year bond reaching a 19-year high of 5.34% on Tuesday before declining to 5.203% midday on Wednesday. The 10-year note yield fell about 6 basis points to 4.66%. Total public debt outstanding approached $40 trillion as of Monday, with Treasury debt outstanding at $32.2 trillion and outstanding 20- and 30-year bonds totaling $5.5 trillion.
Market participants offered nearly $20 billion in bonds for repurchase during Tuesday’s operation, including $1 billion each for bonds maturing in 2048 and 2051. The Treasury cited consistent strong sponsorship in longer-dated sectors as justification for the expanded buyback sizes.
Analysts noted the timing and scale of the move, with Rene Albrecht of DZ Bank highlighting concerns over rising long-term yields and their fiscal impact ahead of the U.S. midterm elections. Thomas Simons of Jefferies described the announcement as a significant shift, questioning the Treasury’s credibility in light of prior guidance.
