The move aims to ease liquidity pressures in long-dated Treasuries as yields hit 19-year highs.
The US Treasury will increase liquidity support buybacks for longer-dated bonds from $2 billion to at least $4 billion per operation. The change targets the 10-year to 20-year and 20-year to 30-year sectors, effective September 9 through November 4.
Thirty-year Treasury yields dropped nearly 10 basis points to 5.187% following the announcement, trimming earlier gains that pushed yields to their highest levels since 2005. The adjustment follows concerns over market stability amid rising debt and inflation pressures.
Market participants noted the move reflects efforts to mitigate volatility in long-dated bonds, which have faced selling pressure in recent weeks. The dollar weakened slightly in response, while yields extended declines by 7 basis points on the day.