The United States (US) Department of the Treasury (US Treasury) announced on Wednesday that it will double the size of some of its buyback operations aimed at supporting liquidity in the longer-dated Treasury securities market.
According to a statement reported by Reuters, the Treasury will increase liquidity support buybacks for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation.
The increase applies to two maturity sectors: securities ranging from 10 to 20 years and those ranging from 20 to 30 years. The measure will take effect on September 9 and remain in place through November 4.
Buyback operations allow the Treasury to remove certain older and less-liquid securities from the market. Increasing their size is therefore aimed at improving liquidity at the long end of the yield curve, without in itself representing a change in the overall amount of US government debt.
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