US Treasury Secretary Scott Bessent announced on August 19-20 that the Treasury will dramatically expand its bond buyback program starting September 9, 2026, purchasing at least $4 billion of longer-dated Treasuries maturing in 10 to 30 years in each operation, funded by increased issuance of short-term Treasury bills. US public debt has ballooned to $40 trillion and the 30-year Treasury yield recently touched a 19-year high, making long-term financing particularly expensive for the government. Thirty-year yields dropped by about 10 basis points immediately following the announcement before bouncing back, with the 10-year benchmark closing around 4.73 %, as analysts believe the buybacks will have limited impact due to significant ongoing issuance and persistent factors such as fiscal deficits and inflation running near 3.7 %. This strategy, dubbed a « Treasury twist », could reduce borrowing costs for American corporations if it succeeds in containing long-term yields.
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