The US Treasury conducted a repurchase operation for 10- to 20-year securities totaling $6 billion. This volume fell short of the $8–10 billion range anticipated by analysts. Following the announcement, the 10-year Treasury yield rose by approximately 5 basis points, reaching 4.84–4.85%.
These yield levels are the highest recorded since November 2023. The operation was part of an expanded buyback program introduced by Treasury Secretary Scott Bessent on August 19. The initiative aims to improve liquidity in older, less-traded securities within the 10- to 30-year maturity range.
The program recently increased its minimum operation size from $2 billion to at least $4 billion through early November. Despite exceeding this floor, market participants expressed disappointment. Analysts from Nomura, ING, and Wells Fargo noted that daily Treasury trading volumes exceed $1 trillion.
The buyback serves as a tool for managing the maturity profile of US debt rather than reducing the total debt, which is projected to exceed $40 trillion. The yield increase affected not only 10-year bonds but also the 20- and 30-year sectors, reflecting broader market concerns regarding the program's scale.
