U.S. Treasury increases bond buyback to $6 billion

The U.S. Treasury has announced a significant increase in its bond buyback operations, targeting up to $6 billion in 20- to 30-year nominal securities. This scheduled operation, set for September 24 with settlement on September 25, marks a substantial rise from the $2 billion maximum previously planned for long-end operations this quarter.

The buyback aims to improve liquidity in older, less-traded securities as long-term Treasury yields approach multi-year highs. The 30-year yield recently reached approximately 5.38%, nearing levels not seen since 2007. The targeted bonds include those maturing between September 2046 and September 2056.

This expansion of the buyback ceiling follows previous Treasury communications indicating that operations covering 10- to 30-year securities would rise to at least $4 billion through early November.