US Treasury Buys Back Long-Dated Bonds Worth Up to $6 Billion, Tripling Its Usual Pace

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The US Treasury announced it will buy back up to 6 billion dollars in long-dated government bonds, three times the normal level of 2 billion dollars, amid pressure from surging bond yields and rising government debt. The actual buyback will take place on Thursday, running for 20 minutes and ending at 2:00 p.m. Eastern Time. The Treasury said future operations will be at least 4 billion dollars. The move follows Treasury Secretary Scott Bessent's statement on August 19 that he would increase buybacks of already-issued securities by at least double the normal level. Although the measure aims to keep liquidity stable in the 10-year and 20-year bond markets, the market reacted negatively: the 10-year bond reached 4.841%, the 20-year rose to 5.314%, and the 30-year broke through the 5.3% level that the market sees as key, most recently yielding 5.307%. US government bond issuance this year is up 11.8% from 2025, while publicly held debt of 31.8 trillion dollars has risen 8.2%.

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％US Government Bond 20 Year
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Buyback aimed at the 20-year market, but the 20-year yield climbed to 5.314% as yields surged despite the operation.

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