1 week ago
US Treasury Doubles Long-Term Bond Buyback Limit From September 9
The US Treasury buys some older government bonds from investors.
These older bonds can be harder to trade than newer ones.
Starting September 9, the Treasury can buy up to at least $4 billion in certain operations instead of $2 billion.
The affected bonds have maturities between 10 and 30 years.
The Treasury says investors have shown strong interest in selling these bonds.
The program is meant to make trading easier.
It is not a promise to reduce the total amount of long-term government debt.
The Treasury will review future buyback sizes on November 4, 2026.
The Treasury will raise the maximum size of selected long-term bond buybacks from $2 billion to at least $4 billion per operation.
The change covers nominal coupon securities in the 10-year to 20-year and 20-year to 30-year maturity sectors.
The higher limit begins September 9 and remains in place through November 4, 2026.
The buybacks are intended to improve liquidity in older, less-traded Treasury securities.
The Treasury said actual purchases will depend on investor offers and selected securities, not automatically reach $4 billion.
- Who
- The United States Department of the Treasury and investors holding eligible Treasury securities.
- What
- The Treasury is increasing the maximum size of selected liquidity-support bond buybacks from $2 billion to at least $4 billion per operation.
- Where
- The affected securities are in the US government bond market, specifically the 10-year to 20-year and 20-year to 30-year maturity sectors.
- When
- The change begins September 9 and remains in place through November 4, 2026; future sizes will be discussed on November 4.
- Why
- The Treasury said the increase will provide additional liquidity in longer-dated securities where investors have shown strong demand.
Key facts
- New maximum
- At least $4 billion per operation
- Current maximum
- $2 billion per operation
- Effective date
- September 9
- Affected securities
- Nominal coupon securities with maturities from 10 to 20 years and from 20 to 30 years
- Program type
- Liquidity-support buybacks
- Higher-limit period
- Through November 4, 2026
- Next review
- The Treasury’s next Quarterly Refunding on November 4
Quotes
U.S. Treasury
U.S. Department of the Treasury officials
“"Consistent strong sponsorship from market participants"”
financialexpress.com
Sources
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