Treasury Yields Hold Decline on Increased Buybacks

2026-08-20 01:10 By Jam Kaimo Samonte 1 min. read

Long-term Treasury yields held their sharp decline after the Treasury Department announced plans to double the size of buybacks for long-dated securities.

The 10-year Treasury yield traded around 4.64% after reaching a 20-month high of 4.75% earlier this week, while the 30-year yield fell below 5.2% after hitting a 19-year high of 5.34%.

The government said it would at least double the size of liquidity-support buyback operations covering securities with maturities ranging from 10 to 30 years.

Scott Bessent previously described the buyback program as an important tool for addressing market dislocations and improving liquidity.

Treasury bonds came under heavy pressure in August as surging AI-related debt issuance, rising deficit spending and concerns over persistent inflation pushed up estimates for term premia.

Meanwhile, minutes from the Fed’s July meeting confirmed that some policymakers favored raising rates this year to prevent stronger inflationary pressures from emerging later.



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Treasury Yields Hold Decline on Increased Buybacks
Long-term Treasury yields held their sharp decline after the Treasury Department announced plans to double the size of buybacks for long-dated securities. The 10-year Treasury yield traded around 4.64% after reaching a 20-month high of 4.75% earlier this week, while the 30-year yield fell below 5.2% after hitting a 19-year high of 5.34%. The government said it would at least double the size of liquidity-support buyback operations covering securities with maturities ranging from 10 to 30 years. Scott Bessent previously described the buyback program as an important tool for addressing market dislocations and improving liquidity. Treasury bonds came under heavy pressure in August as surging AI-related debt issuance, rising deficit spending and concerns over persistent inflation pushed up estimates for term premia. Meanwhile, minutes from the Fed’s July meeting confirmed that some policymakers favored raising rates this year to prevent stronger inflationary pressures from emerging later.
2026-08-20
US Yields Hold Pullback
The yield on the 10-year US Treasury note fell to 4.65% on Wednesday from 20-month highs of 4.75% in the previous session after the Treasury announced it would double the size of buybacks on long-dated securities. The move only increased the limit on operations to $4 billion, but it consolidated the department's efforts on intervening against high yields to limit the market's exposure to duration. Other measures included a joint intervention with Japan to support the yen by selling euros, undercutting Tokyo's yen defense by selling Treasury notes and bonds. On top of that, Secretary Bessent called for the Fed to increase its FIMA facility past the threshold of $60 billion, which would allow Japan to access dollar liquidity without selling Treasuries. Treasury bonds plunged in August as soaring AI-debt issuance, higher deficit spending, and risks of elevated inflation raised estimates on term premia. Meanwhile, FOMC minutes confirmed that some members see the case for higher rates.
2026-08-19
US 10-Year Yield Falls from 20-Month High
The yield on the 10-year US Treasury note fell to 4.65% on Wednesday after testing 20-month highs of 4.75% in the previous session after the Treasury announced it would double the size of buybacks on long-dated securities. The move would increase the maximum size of operations to at least $4 billion. This was in line with the department's sharp efforts to limit the recent surge in long-dated yields as soaring AI-debt issuance, higher deficit spending, and risks of elevated inflation. Recent measures by the Treasury included a joint intervention with Japan to support the yen by selling euros, as Tokyo's common defense of a weak currency is made of selling long-term Treasury notes and bonds. On top of that, Secretary Bessent called for the Fed to increase its FIMA facility past the threshold of $60 billion, which would allow Japan to access dollar liquidity without selling Treasuries. Meanwhile, minutes by the FOMC due shortly could add insight to the magnitude of a divided Fed.
2026-08-19