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Treasury doubles long-dated liquidity buybacks for certain maturities

The larger buyback support, for 10 to 20 year and 20 to 30 year nominal coupon Treasuries, starts September 9 and runs through November 4.

Reported · Written up by our desk · Government Bonds

The U.S. Treasury said it will increase the size of some long-dated Treasury buyback operations designed to support liquidity in less-active parts of the market, according to a statement reported by Reuters through FXStreet.

Specifically, the Treasury will raise liquidity support buybacks for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation, covering two maturity ranges, 10 to 20 years and 20 to 30 years.

The operations will begin September 9 and remain in place through November 4, and the Treasury said buybacks are intended to remove certain older and less-liquid securities from trading.

The Treasury also said the move is aimed at improving liquidity at the long end of the yield curve without changing the overall amount of U.S. government debt outstanding.

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