Treasury Expands Debt Buyback Size to $6 Billion

03:29 PM EDT, 09/09/2026 (MT Newswires) -- The US Treasury Department on Wednesday announced a plan to repurchase up to $6 billion in longer-term government bonds, triple the amount initially outlined to investors. Last month, the Treasury announced it was upsizing its liquidity support buyback operations for longer-dated securities by "at least double" to $4 billion per operation. At the time, Morgan Stanley economists viewed the expansion in bond buybacks as evidence that the Treasury had become uncomfortable with a rise in long-term interest rates. The Treasury said Wednesday that the $6 billion buyback operation will start at 1:40 pm ET Thursday and last for 20 minutes. Settlement is scheduled for Friday, according to a preliminary announcement. US Treasury yields were higher intraday Wednesday, with the 10-year rate up 3.3 basis points at 4.84%. That's the highest level since November 2023, according to CNBC. The 20-year yield rose 1.7 basis points to 5.29%, while the 30-year rate advanced 2.2 basis points to 5.29%. US government debt surpassed $40 trillion for the first time as of Aug. 18, news outlets reported at the time, citing Treasury Department data. Jefferies had termed the Treasury's August buyback announcement as a "surprise," saying the agency might further increase the size of such operations. "In many ways, this is a bad look for Treasury as it gives the impression that they are worried about structural demand for the long-end of the curve," the brokerage said in a note to clients on Aug. 19. "Continued reliance on short-term funding increases Treasury's rollover risk, which could put additional pressure on term premia that offset the benefit from the additional buybacks."