Treasury doubles long-bond buybacks, sending 30-year yield down 9 bps
What's next: The larger purchases begin Sept. 9 and run through Nov. 4, targeting 10- to 30-year debt amid acute market strain.
The Treasury Department will more than double the size of its debt buybacks in longer-dated bonds, a move that quickly drove U.S. yields lower after weeks of turmoil in the market. The expanded operations will raise the maximum purchase size from $2 billion to at least $4 billion and focus on the 10- to 20-year and 20- to 30-year sectors. The change starts Sept. 9 and stays in place through Nov. 4. After the move, the benchmark 10-year Treasury yield fell 5.7 basis points to 4.647%, while the 30-year bond yield dropped 9 basis points to 5.196%. Treasury said it aimed to provide more liquidity in longer-dated nominal bonds, where trading conditions have been under pressure.