The US Treasury will at least double the scale of long-term Treasury bond buyback operations.

TechFlow reports, on August 19, the U.S. Department of the Treasury announced that it is at least doubling the size of liquidity-support buyback operations for long-term nominal coupon securities, involving two maturity segments of 10-to-20 years and 20-to-30 years. Currently, the maximum size per operation is $2 billion, and the size per operation will be increased to at least $4 billion in the future.

The adjustment will take effect on September 9, 2026, and will be implemented for the remainder of the current refunding quarter (through November 4, 2026). The Treasury Department will provide more information regarding future buyback sizes at the next Quarterly Refunding Conference scheduled for November 4, 2026. This expansion of buyback operation size reflects the Treasury Department's desire to provide stronger liquidity support for the long-term nominal Treasury market. The Treasury Department will announce the updated Temporary Treasury Buyback Program later.

After the U.S. Department of the Treasury announced the buyback-related plan, the Treasury yield curve flattened significantly.