The US Treasury is increasing the scale of its liquidity-support buybacks for long-term securities. Starting September 9, 2026, the limit for operations in the 10- to 20-year and 20- to 30-year nominal coupon sectors will rise from $2 billion to at least $4 billion.
Treasury Secretary Scott Bessent stated that the volume of these operations may increase further based on market conditions. The program will run until November 4, 2026, and will focus on off-the-run Treasuries, which are older securities that trade less frequently than new issues.
The decision follows consistent demand from dealers that exceeded the previous $2 billion cap. Despite the announcement, the impact on yields has been limited. While 10-year Treasury yields initially dropped by 6 basis points to 4.65% and 30-year yields fell by 9 basis points to 5.20%, rates soon resumed their upward trend.
The total US national debt stands at approximately $40 trillion. Analysts note that the $4 billion buyback represents only about 0.01% of the total outstanding debt, making it difficult for such measures to offset broader fiscal pressures, including inflation and persistent deficits.
