U.S. Treasury to double buyback size for long-term debt, starting Sept 9

The U.S. Treasury Department announced on Wednesday it will at least double the size of its buyback operations for long-term government debt, a move that immediately eased a sharp selloff in the bond market and sent yields lower. The decision, effective September 9, comes just one day after the yield on the 30-year Treasury bond surged to its highest level since 2007.

Treasury Secretary Scott Bessent said the department will increase the maximum size of each buyback operation from $2 billion to at least $4 billion. The expanded program will focus on securities maturing in 10 to 20 years and 20 to 30 years and will run through November 4, when the next Quarterly Refunding is scheduled. The Treasury framed the action as a routine liquidity support measure, stating it reflects the "large volume of high-quality offers" it routinely receives in these operations.

The announcement had an immediate and broad market impact. The 30-year yield, which had touched 5.337% on Tuesday, fell sharply to around 5.19%. The 10-year yield also eased. The move helped spark a rally in stocks, with the Dow Jones Industrial Average adding about 230 points following the news. Bitcoin also climbed, rising...