The U.S. Treasury will conduct a buyback operation for up to $6 billion of longer-dated government debt on Thursday, September 24, targeting nominal securities in the 20- to 30-year maturity range. The operation will cover bonds maturing from September 2046 through September 2056, with bidding scheduled between 1:40 p.m. and 2:00 p.m. ET and settlement expected on September 25.
The $6 billion ceiling represents a significant increase from the $2 billion maximum initially planned for long-end operations earlier this quarter. In August, the Treasury announced that buybacks covering 10- to 30-year securities would rise to at least $4 billion through November 4. Officials attributed the larger operations to strong participation and efforts to improve liquidity in older, less-traded securities.
Long-term Treasury yields have reached levels not seen in years. The 30-year yield reached approximately 5.38% on Wednesday, moving close to the roughly 5.40% level recorded earlier in the month—its highest level since 2007. The 10-year yield also climbed above 5.12% during Wednesday trading as stronger U.S. business activity supported expectations for elevated interest rates.
In a previous September 10 operation targeting 10- to 20-year debt, the Treasury accepted $5.19 billion from about $10.5 billion offered, remaining below the announced $6 billion ceiling. Following that operation, the 10-year yield continued higher toward roughly 4.95%.
The Treasury characterizes its buyback program as a market-liquidity tool designed to remove older, less-liquid securities from circulation and provide investors with regular opportunities to sell those holdings. The department does not set a target for borrowing costs or guarantee lower yields across the Treasury market through these operations.
Rising long-term rates have coincided with pressure on risk assets more broadly. Bitcoin fell below $84,000 after trading above $87,000 earlier Wednesday, as the 10-year Treasury yield moved above 5%, tightening financial conditions across markets sensitive to borrowing costs and liquidity.
