The U.S. Treasury announced it will double the maximum size of its liquidity support buyback operations for longer-dated nominal coupon securities to at least $4 billion per operation, up from $2 billion, targeting the 10-to-20-year and 20-to-30-year sectors.
Treasury Secretary Scott Bessent initiated the move to address a sharp rise in long-term borrowing costs that reached multi-year highs. The expansion takes effect Sept. 9, 2026 and runs through the current refunding quarter, concluding Nov. 4.
When the Treasury repurchases its own outstanding bonds, it reduces supply on the long end of the curve, typically supporting prices and pressuring yields lower. Following the announcement, Treasury yields declined and the U.S. dollar weakened.
The Treasury cited consistent strong sponsorship from market participants in prior operations, noting significant volumes of high-quality offers routinely received in longer-dated buyback auctions. The expanded program directly addresses duration risk held by institutional investors by improving liquidity and stabilizing yields across a critical portion of the fixed-income curve.
Treasury officials will release an updated tentative buyback schedule at a later date, detailing specific dates and amounts for upcoming operations. The Quarterly Refunding scheduled for Nov. 4 will include additional information on future buyback sizes.
