US Treasury to buy back $6 billion in long-term government bonds
The US Department of the Treasury announced a buyback of government debt securities worth $6 billion. The operation will involve 10- and 20-year Treasury notes and, according to the department, is intended to support the proper functioning of the bond market. This was reported by CNBC Top News.
Three times larger volume
The planned buyback is three times higher than the usual volume of such operations. It concerns already issued long-term securities of the US government.
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The announcement followed a statement by US Treasury Secretary Scott Bessent on August 19. At the time, he said that the department would at least double the usual volume of buybacks of already issued securities.
Debt market liquidity
Officially, the operation is aimed at maintaining the liquidity of the US government debt market, particularly 10- and 20-year notes. At the same time, CNBC notes that the move is also viewed as an attempt to limit the rise in Treasury yields. According to the outlet, yields on such securities had previously reached levels not seen since the period before the 2008 global financial crisis.
