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US Treasury to Buy Back Up to $6B of 10-20 Year Debt on Sept 10

The US Treasury will buy back up to $6 billion of 10- to 20-year Treasuries on September 10, triple the size of its previous long-bond repurchase operation. The department has said it will at least double long-bond buybacks over the coming quarter to improve market liquidity. After a Treasury selloff pushed 30-year yields to their highest since 2007, yields kept rising on the news, with the 10-year touching 4.8528%, its highest since November 2023.

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AI take

The Treasury is scaling up long-end buybacks precisely as the long end sells off, which reframes the operation from routine liquidity management into a signal that officials are watching term-premium stress. The immediate market reaction — yields rising rather than falling on the announcement — suggests participants read the move as acknowledgment of heavy duration supply and weak demand rather than as a backstop. The open question is whether expanded buybacks actually restore liquidity at the long end, or whether the market keeps treating them as evidence of the very pressure they are meant to ease.

Generated by AI for reference only.

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