The U.S. Treasury Department plans to more than double its government debt buybacks as officials seek to improve liquidity in the longer-term bond market, according to the department.
Treasury Secretary Scott Bessent will oversee the expanded program, which will focus on debt maturing in 10 to 20 years and 20 to 30 years. The maximum size of individual buyback operations will rise from $2 billion to at least $4 billion beginning September 9.
Treasury said the move is intended to provide additional liquidity in longer-dated sectors where investors continue to show demand.
Market analysts have cited higher term premiums, changes in the Treasury investor base and increased corporate debt issuance linked to artificial intelligence as factors behind recent yield pressures.
As noted by investor Peter Boockvar, the program does not reduce federal debt. Instead, it changes the maturity mix of Treasury obligations.
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BREAKING: Treasury doubles debt buybacks as Bessent moves to steady bond market
— CNBC (@CNBC) August 19, 2026
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