The Treasury Department said Wednesday it will at least double the level of government debt buybacks in the next few months, targeting the sensitive longer-duration segment of the market.
Yields tumbled following the announcement and stock market futures surged.
Under the accelerated buyback, Treasury, led by Secretary Scott Bessent, will target the 10- to 20-year and 20- to 30-year portion of the market, which has seen a buyers' strike since late June.
The change will start Sept. 9 and stay in effect through Nov. 4.
“This increase in buyback operation sizes reflects Treasury's desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants,” the department said in a statement.
