The US Treasury and Federal Reserve are coordinating to shift federal borrowing toward shorter-duration instruments while capping long-term supply, with the 30-year Treasury yield reaching 5.31% on August 17, 2026, its highest level in 19 years. Treasury Secretary Scott Bessent announced on August 5, 2026 that longer-dated bond auction sizes would remain stable, with net bill supply projected to reach $827 billion in 2026. T-bills now represent approximately 22.2% of outstanding marketable Treasury debt, surpassing the recommended 15-20% range. The Fed began purchasing T-bills in December 2025, and Treasury doubled its buyback operations to at least $4 billion per operation starting September 9, 2026. With US debt exceeding $40 trillion, this strategy aims to prevent a spike in long-term borrowing costs, but primary dealers have flagged rollover risk concerns.
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