Treasury Secretary Scott Bessent doubled the size of government bond buyback operations, increasing the amount per operation from $2 billion to at least $4 billion. The program targets longer-dated Treasuries and is scheduled to run from September 9 through November 4.
The market reaction was mixed. While the 30-year yield initially dropped nearly 10 basis points, the 10-year Treasury yield climbed to roughly 4.85% on September 9, reaching its highest level since October 2023. The 30-year yield moved into the 5.2% to 5.3% range.
The buyback program aims to replace older, less liquid bonds with newer issuance to improve trading conditions. However, the US national debt crossed the $40 trillion mark in August 2026, and quarterly Treasury issuance needs continue to run into the hundreds of billions of dollars.
Bessent stated that the expansion is part of a larger toolkit and may be scaled further beyond $4 billion depending on economic conditions. The program's effectiveness is questioned as it does not reduce the total amount of outstanding debt.