The U.S. Department of the Treasury has communicated that it will increase, "at least double," the amount of its long-term bond repurchase operations with the aim of reinforcing market liquidity, after the required yield on debt between 10 and 30 years has surged to levels not seen in the last two decades.
Thus, between the upcoming September 9 and November 4, 2026, the agency led by Scott Bessent will raise the current cap for each operation, which is now set at 2 billion dollars (1.728 billion euros), "to a minimum of 4 billion dollars (3.456 billion euros) per operation."
The reinforcement of the volume of these repurchases, communicated just two weeks after the publication of the quarterly schedule of such interventions, highlights the Treasury's intention to provide more liquidity to the long-term nominal segments, where there is a firm and recurrent support from market agents, "as demonstrated by the significant volume of high-quality offers that the Treasury regularly receives in long-term repurchase operations."
After the announcement from the U.S. Treasury was made known, long-term U.S. debt yields notably relaxed, after having reached their highest levels since 2007 on Tuesday.
Specifically, the yield on the 30-year Treasury bond fell to 5.187%, down from the 5.337% marked in the previous session; the yield on the 20-year bond decreased to 5.183% from 5.332%; and the yield on the 10-year bond retreated to 4.637%, compared to the 4.748% recorded in Tuesday's session.