The U.S. Treasury will proceed with its regular debt auction schedule despite plans to double quarterly repurchases of longer-dated bonds, Secretary Scott Bessent said on Monday. The department will maintain its existing issuance program while increasing buyback operations for 10- and 20-year securities to $4 billion per operation starting September 10.
Bessent, speaking at a news conference, confirmed the Treasury has not yet executed any purchases under the expanded buyback initiative. The move follows a recent announcement that the Treasury will more than double its quarterly repurchases in the 10- to 30-year sector over the coming quarter. The department’s cash balance at the Federal Reserve, known as the Treasury General Account (TGA), stood at approximately $940 billion as of last Wednesday, up from an average of $840 billion over the past year—the highest level outside of the rapid accumulation during the COVID-19 pandemic.
The expanded buyback program comes as the U.S. debt load approaches $40 trillion, driven by sustained government spending. Bessent’s remarks follow the Treasury’s first joint intervention in the Japanese yen in 15 years, executed earlier this month. The department’s actions also follow a Supreme Court ruling earlier this year that deemed a significant portion of President Donald Trump’s import tariffs illegal, resulting in $166 billion in refunds owed to importers. Bond yields have not reached the elevated levels seen nearly two decades ago, which previously prompted adjustments to buyback strategies.
