Treasury Department to buy back $6 billion in longer-term debt, triple the normal level

The Treasury Department on Wednesday said it will buy back $6 billion of government debt in an operation aimed at keeping bond markets functioning.

The much-anticipated announcement triples the normal buyback operation and follows an announcement Aug. 19 from Treasury Secretary Scott Bessent that the department would at least double the normal amount for already-issued securities.

Though the operation ostensibly is aimed at keeping government debt markets liquid — in this case for 10- and 20-year notes — the extraordinary measure also has been seen as an effort to put a lid on Treasury yields, which had hit highs not seen since prior to the global financial crisis in 2008.

Market reaction, however, was negative. Treasury yields rose further, with the benchmark 10-year issue hitting 4.841%, up nearly 4 basis points on the day. One basis point equals 0.01%.

The actual buybacks will happen Thursday in a 20-minute operation that will conclude at 2 p.m. ET.

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