Bessent warns that issuing more short-term bonds to avoid long-term market pressure creates risks for money market liquidity.
“While this buys time for that segment of the market, it requires the government to issue more shorter-term bonds, risking unintended consequences for the functioning of liquidity markets,”
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Bessent announces Treasury is doubling the size of liquidity support buybacks for 10-to-30-year nominal securities.
“increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities (the 10-year to 20-year sector and the 20-year to 30-year sector).”
Bessent explains the buyback increase responds to consistent strong demand from market participants in longer-dated nominal sectors.
“This increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations.”
Bessent announces Treasury is doubling buyback operations from $2 billion to at least $4 billion starting September 9, 2026.
“This change is effective September 9, 2026 and will be in effect for the remainder of this refunding quarter (through November 4, 2026).”
Bessent announces Treasury will double buyback operation sizes from $2 billion to at least $4 billion starting September 9, 2026.
“The current maximum size of $2 billion per operation will be at least $4 billion per operation.”