Treasury Department to buy back up to $6 billion in longer-term debt, triple the normal level
The operation aims to support liquidity after a selloff pushed long-term yields sharply higher, with benchmark 10-year yields near 4.85%, Reuters reported.
- On Wednesday, the Treasury Department announced it will buy up to $6 billion in 10- to 20-year Treasury bonds during an operation on Thursday, tripling the size of the previous long-dated operation.
- The Treasury committed last month to double buyback sizes to at least $4 billion over the next quarter, aiming to support liquidity in the government debt market through targeted operations.
- Benchmark 10-year yields hit 4.8528%, the highest since November 2023, while a broader selloff pushed 30-year yields to their highest point since 2007, according to reporting by Karen Brettell.
- Thursday's buyback operation will occur in a 20-minute window, concluding at 2 p.m. ET, as Treasury buys older, less liquid securities to keep bond markets functioning.
- Treasury Secretary Scott Bessent previously outlined the department's strategic approach during an Oval Office announcement in Washington on Friday, September 5, 2025, reflecting focus on debt market stability.
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Treasury will buy more government bonds than previously announced. The market remains ‘underwhelmed.’
The Treasury Department said it would buy back $6 billion in U.S. government debt, exceeding the amount previously announced in its effort to contain bond yields.
The U.S. Treasury Department recently announced the values that will be practiced in the expansion of the long-term securities buyback policy announced just over three weeks ago. The action will be conducted in the ten to 20 year term, worth US$6 billion, scheduled to take place tomorrow. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Bond yields rise after Treasury Department announces size of buyback operation
Bond yields rose on Wednesday after the Treasury Department said it would buy back up to $6 billion of government bonds, putting a dollar figure on the operation first announced last month.
The U.S. Department of Finance intends to triple the return on long-term government bonds as part of a liquidity support operation planned for Thursday.
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