The US Treasury announced on August 19 a significant expansion of its bond buyback program, doubling the size of each operation from $2 billion to at least $4 billion, running from September 9 through November 4. The 30-year Treasury yield climbed to its highest level since 2007, signaling investor skepticism about the measure’s effectiveness. US public debt has surpassed $40 trillion, creating a feedback loop where rising issuance pushes yields higher, which in turn increases government borrowing costs. Analysts note that buybacks do not reduce outstanding debt but merely swap older securities for cash, treating symptoms rather than the underlying problem. The September 9 start date for the expanded operations will be a key moment for markets to watch.
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