Treasury Doubles Buyback Operations, Gold Surges Over $70 in a Day
The US Treasury Department announced plans to double its liquidity support buyback operations for long-term nominal coupon securities. The maximum per-operation size will rise from $2 billion to at least $4 billion, covering both 10-to-20-year and 20-to-30-year maturity buckets.
The new rules take effect on September 9, 2026, and will remain in place for the rest of the current refunding quarter. This move aims to provide stronger liquidity support to the long end of the market as long-term nominal Treasury yields have climbed to multi-year highs.
Following the announcement, gold prices surged more than $70 in a single day, with the 10-year Treasury yield tumbling to around 4.651%. The dollar index touched the 99 level for the first time since June of this year.