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[BUSINESS] · United States · 17 sources

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US Treasury to double long-term bond buybacks to boost liquidity FAST-MOVING

The US Treasury has announced a significant expansion of its liquidity support program for long-dated government debt. Starting September 9, 2026, the agency will at least double the maximum size of its buyback operations for 10-to-20-year and 20-to-30-year nominal coupon securities, increasing the limit from $2 billion to at least $4 billion per operation. This expanded program is scheduled to remain in effect through November 4, 2026.

The move aims to provide greater liquidity in longer-dated sectors where market participants have shown strong demand. The total quarterly capacity for these liquidity support buybacks has been raised from $30 billion to $38 billion. This intervention follows a period of intense pressure on the long end of the yield curve, where 30-year bond yields recently reached levels not seen in decades.

Financial markets reacted sharply to the news. Treasury yields fell significantly, with the 10-year note dropping 6 basis points to 4.647% and the 30-year bond falling approximately 9 basis points. This decline in yields, combined with a weaker dollar, triggered a rally in precious metals; gold prices surged toward $4,460–$4,484 per ounce, and silver also saw substantial gains.

Entities

Bessent · Federal Reserve · Gold · Oracle · Scott Bessent · US Treasury · United States · Wall Street

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Sources

Sunset Market Commentary [www.actionforex.com]
about 2 hours ago