The US Treasury announced on August 19 that it would at least double the maximum size of its liquidity-support buyback operations for 10- to 30-year securities, raising the cap from $2 billion to a minimum of $4 billion per operation starting September 9. These buybacks will run through early November 2026, building on a quarterly schedule that had already earmarked up to $38 billion in liquidity-support buybacks. The 10-year Treasury yield fell to approximately 4.65% after the announcement, having earlier tested levels near 4.75%. The intervention targets reduced liquidity and wider bid-ask spreads in the long-dated bond market, where yields have climbed to multi-year highs amid persistent fiscal deficits and more selective foreign demand.
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