The US Treasury has raised its authorization for repurchasing long-dated government bonds to $6 billion, tripling the initial amount it had planned, the department announced.
The revised ceiling represents the first step in an expanded buyback program that Treasury Secretary Scott Bessent outlined at an event in Washington on January 16, 2025. The new target is three times the $2 billion originally communicated for the initiative.
The Treasury buyback program allows the government to repurchase outstanding bonds from the market, a tool used to manage the maturity profile of US debt and support liquidity in on-the-run issues. Long-term bonds are typically the least liquid segment of the Treasury market, making them a natural focus for buyback activity.
