Treasury Boosts Long-Term Bond Buybacks to $4 Billion Amid Market Volatility

The U.S. Treasury made an unexpected move in the bond market by doubling the amount of longer-term government bonds it buys back, from $2 billion to at least $4 billion per operation starting September 9.

This measure is designed to improve liquidity and reduce stress in the long-dated Treasury market, which has been experiencing a sharp selloff. The move can help stabilize the bond market, push yields lower, and ease borrowing costs across the economy, including rates tied to mortgages and other loans.

Long-term Treasurys are U.S. government bonds that mature 10-30 years from now. The Treasury's increase in buybacks is intended to provide 'greater liquidity support' in this part of the market, which has been under pressure due to the recent selloff.

The announcement was followed by gains in scarce assets. Bitcoin climbed more than 5% over 24 hours to around $68,147, gold rose about 2.7% in 24 hours to $4,485 per ounce, and silver gained roughly 2.5% to $65.59 per ounce.