US doubles long-bond buybacks amid surging yields
The US Treasury raised buybacks by at least US$14 billion this quarter after 30-year yields hit a 19-year high.
US Treasury Secretary Scott Bessent doubled the size of buybacks for long-duration Treasury bonds amid surging yields. The move came in response to a significant bond selloff that pushed the 30-year yield to a 19-year high, driven by fears of war and fiscal concerns. The Treasury will increase buyback sizes to at least $4 billion per operation for the 10- to 30-year and 20- to 30-year sectors, effective September 9 through November 4.
Analysts noted that higher yields can lead to increased borrowing costs for both the government and the private sector. Despite the increase, the Treasury still faces a massive debt pool and upcoming debt maturity dates.
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