Key facts
- The Treasury Department is doubling its bond buyback program for 10- to 30-year Treasurys.
- The maximum purchase amount per operation will increase to at least $4 billion.
- The expanded buybacks will take place from September 9 through November 4.
- This intervention follows the 30-year Treasury yield reaching its highest level in nearly two decades, exceeding 5.3%.
- The 30-year yield dropped by approximately 0.1 percentage point after the announcement.
- US stock markets saw modest gains, while the US dollar declined.
The U.S. Treasury Department announced it is doubling its bond buyback program to at least $4 billion per operation for 10- to 30-year Treasury securities, a move aimed at calming a stressed bond market. The expanded buybacks are scheduled to run from September 9 through November 4.
This intervention comes as the 30-year Treasury yield had surged to its highest level in nearly two decades, surpassing 5.3%. The Treasury's action followed a significant sell-off in U.S. bonds. Following the announcement, the 30-year yield dropped by approximately 0.1 percentage point.
U.S. stock markets reacted positively to the news, with major indices closing around 0.2% higher. However, the U.S. dollar experienced a significant decline.