Treasury triples long-bond buybacks to $6B, yields still climb

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U.S. Treasury yields climbed Wednesday after the Treasury Department said it will repurchase up to $6 billion of longer-dated notes in Thursday's operation, tripling the size of its last long-end buyback. The purchase targets 10- to 20-year securities and exceeds the "at least $4 billion" floor Treasury set on August 19, when it doubled the prior $2 billion cap to support liquidity in less actively traded issues. Three weeks later, the first enlarged window has been sized even higher. The announcement did not ease selling pressure: the 2-year yield rose 2 basis points to 4.42%, its highest since July 2024, while the 10-year yield advanced 5 basis points to 4.84%, a high not seen since November 2023, and the 30-year yield added about 4 basis points to near 5.29%. The Treasury uses these operations to absorb older, less liquid coupons rather than to shrink overall debt, and some investors had expected an even larger print, which helped keep yields bid even as the repurchase window widened.

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2-year yield rose to 4.42%, its highest since July 2024, indicating higher yield (lower bond price).