The move aims to boost liquidity in 10- to 30-year Treasury securities without altering total US government debt levels.
The US Treasury will increase its liquidity support buybacks for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation. The change targets securities with maturities of 10 to 20 years and 20 to 30 years, effective September 9 through November 4.
Buyback operations help remove older, less-liquid securities from the market, improving liquidity at the long end of the yield curve. The Treasury emphasized the adjustment does not reflect a shift in overall debt levels but aims to enhance market functioning.
The decision follows prior efforts to address liquidity concerns in longer-dated Treasuries, though no immediate market reaction was specified in the announcement.