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Treasury triples long-dated bond buyback cap in Sept. 10 operation
The $6 billion ceiling is set for a Sept. 10 buyback of off-the-run Treasurys with 10 to 20 years remaining, with settlement on Sept. 11.
The US Treasury has scheduled a Sept. 10 buyback of older long-dated Treasurys with a $6 billion maximum face-value ceiling, giving dealers more room to sell inventory to the government. The operation window runs from 1:40 p.m. to 2:00 p.m. Eastern on Sept. 10, with settlement on Sept. 11, and eligible maturities run from Sept. 11, 2036 through Sept. 10, 2046.
The ceiling triples the prior $2 billion limit and is larger than the minimum expansion Treasury previously outlined on Aug. 19. The tentative schedule, published Sept. 9, targets nominal Treasury securities with 10 to 20 years remaining, while the final list of securities is due at 11 a.m. Eastern on the operation day.
According to CryptoSlate, Treasury buyback rules are designed as liquidity support by providing a predictable outlet for selling off-the-run securities, which can differ from cash-management buybacks that focus on government cash balances and bill issuance. The purchased bonds are retired at settlement rather than lent back into the market, and there is no minimum purchase commitment, meaning Treasury could accept less or nothing depending on offers.
The piece frames a market-structure test for Bitcoin, arguing the key question is whether improved dealer intermediation in Treasury trading could spill over into broader financing conditions. It notes research cited by CryptoSlate suggests liquidity can improve and dealer holdings can fall more when inventories are high, but it also says the impact would need to show up in measures like tighter bid-ask gaps and less strained pricing of older bonds relative to newer issues rather than yields alone.
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