US Treasury to buy up to $6 billion in Sept 10 buyback operation

The US Treasury Department said on Wednesday that it will buy up to $6 billion of 10- to 20-year bonds in a buyback operation on Thursday, according to Business Recorder. The amount is triple the size of its previous long-dated buyback. The step follows a sharp sell-off, which drove 30-year yields to levels not seen since 2007.

Last month the department had announced plans to double its buybacks of longer-dated debt, with at least $4 billion slated for the upcoming quarter. The aim, it said, was to bolster liquidity. These operations target older securities that trade less actively.

Yields rose after the announcement, with the benchmark 10-year yield hitting 4.8528%, its highest since November 2023. The move underlines how sharply long-term US bond yields have been shifting, a development global investors watch closely.