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Treasury expands 10 to 30 year buybacks, easing bond market strain

The Treasury said it would raise the maximum 10 to 30 year purchase size per operation to at least $4 billion starting September 9.

Reported · Written up by our desk · Central Banks

The Wall Street Journal reported that U.S. Treasury Secretary Scott Bessent expanded Treasury bond buybacks, framing the move as a more aggressive intervention aimed at calming a bond market that had been under strain from higher long term rates.

According to the report, the Treasury would double the maximum amount it buys per operation in the 10 to 30 year bucket, raising the cap from $2 billion to at least $4 billion, with purchases starting September 9 and continuing through November 4.

The Journal said the move came after the 30 year bond yield topped 5.3% this week, its highest level in nearly two decades, and that within hours of the announcement the 30 year yield fell by close to 0.1 percentage point.

The report added that equity benchmarks also rose after the announcement, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite each closing around 0.2% higher, while noting the practical impact on outstanding debt may be smaller than the initial bond market reaction suggests.

Latest closeS&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%|Dow Jones 53,732.41 ▼0.2%

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