Home›Bonds & Rates›Government Bonds›Treasury to double long-end liquidity support buyback…

Treasury to double long-end liquidity support buyback size from Sept. 9, 2026

The maximum purchase per operation will rise from $2.0 billion to at least $4.0 billion, adding demand for 10 to 30 year Treasuries and pressuring long-term yields lower.

Reported · Written up by our desk · Government Bonds

The U.S. Treasury said it will at least double the maximum size of its liquidity-support buyback operations for longer-dated Treasury securities, raising the cap from $2 billion to at least $4 billion per operation.

The change is scheduled to apply beginning September 9, 2026, and is expected to increase demand for the 10 to 30 year portion of the Treasury curve. The announcement cited pressure on long-dated yields tied to fiscal, inflation and supply risks.

Following the statement, long-dated Treasury yields and the U.S. dollar fell, as greater Treasury buying reduces the amount of duration the private market must absorb, putting downward pressure on long-term yields.

The move comes as investors have been focused on the recent rise in the 30-year bond yield to its highest level since 2007, and some market participants described the action as acting like a limited form of easing, with gold and equities also rallying.

Latest closeGold $4,432.00 ▲1.6%

More like this

Sources