U.S. Treasury doubles liquidity-support buybacks for long-dated bonds, yet 30-year yields surge past 5.2% in 24 hours.
The U.S. Treasury increased its liquidity-support buybacks for 10-to-30-year nominal Treasuries to at least $4 billion per operation, up from $2 billion, starting September 9. The move targets older, off-the-run securities to improve market functioning, not to reduce yields directly.
Despite the effort, the 30-year Treasury yield rebounded to 5.247% within 24 hours, erasing earlier gains. Analysts note the Treasury General Account’s $1 trillion balance is largely unusable, with only $100 billion to $200 billion available to influence debt maturity profiles.
Investors remain skeptical as long-term yields climb, driven by inflation concerns, fiscal deficits, and geopolitical risks. The policy clash between Treasury’s yield suppression and the Fed’s inflation fight could pressure the dollar if private demand wanes.