U.S. Treasury increases maximum buyback size for 10- to 30-year bonds to support liquidity amid higher yields.
The U.S. Treasury Department will raise the maximum size of its liquidity-support buyback operations for longer-dated nominal coupon securities to at least $4 billion. The move targets 10- to 20-year and 20- to 30-year sectors, up from a prior $2 billion cap.
The adjustment follows elevated yields in long-end Treasuries and aims to improve market functioning. Previous buyback operations were smaller and less frequent, with the Treasury testing the program earlier this year.
No immediate market reaction was specified in the announcement.