The US Treasury said on Aug. 19 that it will at least double the size of its liquidity support buyback operations for long-dated nominal coupon securities. The change covers two maturity buckets: 10-year to 20-year securities and 20-year to 30-year securities. The maximum size of each operation is currently set at $2 billion, and will be raised to at least $4 billion going forward. According to the Treasury, the adjustment will take effect on Sept. 9, 2026, and remain in place for the rest of the current quarterly refunding period through Nov. 4, 2026. The department also said it will share more details on future buyback sizes at its next quarterly refunding meeting scheduled for Nov. 4, 2026. The Treasury said the larger operations are intended to provide stronger liquidity support for the market in long-dated nominal Treasuries. It added that an updated temporary Treasury buyback schedule will be released later. After the plan was announced, the US Treasury yield curve flattened sharply.
The US Treasury said on Aug. 19 that it is increasing the size of its liquidity support buyback operations for long-dated nominal coupon securities by at least twofold.
The move applies to two maturity sectors: 10-year to 20-year securities and 20-year to 30-year securities. The current maximum size for each operation is $2 billion. Under the new arrangement, each operation will be increased to at least $4 billion.
The adjustment will take effect on Sept. 9, 2026, and will stay in place for the remainder of the current quarterly refunding period, through Nov. 4, 2026.
The Treasury said it will provide more information about future buyback sizes at the next quarterly refunding meeting, which is scheduled for Nov. 4, 2026. It also said the expansion reflects its intention to provide stronger liquidity support for the market in long-dated nominal Treasuries. An updated temporary Treasury buyback schedule will be released later.
After the Treasury published the buyback plan, the US Treasury yield curve flattened sharply.
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