Treasury Slams Brakes with $6B Long-Bond Buyback Amid Yield Surge

The U.S. Treasury Department has announced that it will buy back up to $6 billion of longer-dated government debt on September 24, as borrowing costs remain elevated. The operation targets nominal securities in the 20- to 30-year maturity range, covering bonds maturing from September 2046 through September 2056.

The Treasury's move comes as long-term Treasury yields test levels not seen in years. The 30-year yield reached about 5.38% on Wednesday, nearing its highest level since 2007. The 10-year yield also climbed above 5.12%, supported by stronger U.S. business activity and elevated interest rate expectations.

The increased borrowing costs have put pressure on risk assets, including Bitcoin, which fell below $84,000 after trading above $87,000 earlier in the day. Treasury's buybacks are designed to improve liquidity in older, less-traded securities, but do not guarantee lower yields across the market.