Bessent Doubles Treasury Buybacks of 10- to 30-Year Bonds as Long-Term Yields Hit Near Two-Decade Highs

Treasury Secretary Scott Bessent announced Wednesday that the Treasury Department will at least double the maximum size of its liquidity support buyback operations for 10- to 30-year debt, lifting the cap from $2 billion to at least $4 billion per operation, with the expanded program beginning September 9. The move came just two weeks after the Treasury released its regular quarterly buyback schedule, signaling urgency as long-term borrowing costs had climbed to levels not seen in nearly two decades. The 30-year yield fell as much as 10 basis points immediately following the announcement, dropping to 5.18%, while the dollar also declined.

The buybacks target the 10- to 20-year and 20- to 30-year segments of the market, the portions under the most stress. Analysts described the intervention as Bessent acting as an activist Treasury secretary deploying the department's available tools to cap surging yields, though some Wall Street observers expressed skepticism about the operation's staying power in the face of broader market pressures.