The Kobeissi Letter
19 hour ago
Bullish

US Treasury doubles long-term bond buybacks to at least $4B

1 min

The US Treasury will double long-term Treasury buybacks after a rapid surge in yields. Repurchases will rise from $2 billion to at least $4 billion to support liquidity in 10- to 30-year maturities as total US debt approaches $40 trillion. The move aims to stabilize trading conditions and improve market functioning in the long end of the curve. According to The Kobeissi Letter, this aligns with prior calls for intervention.

Key details

  • Buyback size: increased to at least $4 billion from $2 billion.
  • Targeted maturities: 10–30 years.
  • Stated purpose: liquidity support in long-dated Treasuries.
  • Context: US Treasury yields surged; total US debt is nearing $40 trillion.

Market implications

  • Potential easing of long-end yield pressures through improved liquidity.
  • Possible relief for duration-sensitive assets: investment-grade credit, mortgages, rate-sensitive equities, and crypto via risk-sentiment channels.
  • Signals active Treasury market support without changing monetary policy settings.