U.S. Treasury Expands Bond Buybacks as Yields Soar
PUBLISHED Aug 19, 2026, 4:35 PM ET
The U.S. Treasury announced it is significantly increasing buybacks of long-term government debt after the 30-year bond yield surged to its highest level since 2007, reaching over 5.33% . The department will "increase, by at least double," the size of its buyback operations for 10- to 30-year securities, raising the cap from $2 billion to at least $4 billion per operation starting September 9 . The move, announced by Treasury Secretary Scott Bessent, seeks to improve liquidity and stem the rise in long-term borrowing costs . The announcement drove the 30-year yield down by as much as 9 basis points to 5.19% and sparked a rally in U.S. stocks and gold . This action comes amid concerns over a massive wave of corporate debt issuance, a surging fiscal deficit nearing $40 trillion, and just ahead of a $16 billion auction of 20-year bonds . The intervention is a form of "soft financial repression," according to analysts, though its long-term impact on fundamental issues like the deficit is seen as limited .
By James Porter | JQJO News
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U.S. Treasury announces doubling buyback sizes amid surging yields. https://www.reuters.com/markets/us/us-treasury-expands-bond-buybacks-yields-soar-2026-08-19
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