The U.S. Treasury will buy back up to $6 billion of Treasuries to boost liquidity in the long-term bond market. With long-term yields rising quickly, it sharply increased the buyback size from usual levels, but market reaction was muted.

On Sept. 9, Cryptopolitan reported that the Treasury will purchase up to $6 billion of outstanding nominal Treasuries with 10 to 20 years remaining maturity from 1:40 p.m. to 2 p.m. Eastern time on Sept. 10. That is three times the previous per-operation cap of $2 billion for this segment.

The Treasury announced on Aug. 19 that it would more than double buybacks in the 10 to 20-year and 20 to 30-year segments to at least $4 billion to strengthen liquidity in the long-term market. The $6 billion purchase is the first large-scale long-term buyback since the measure took effect. Further long-term purchases are also set to be conducted at a minimum of $4 billion per operation through early November.

But Treasury yields rose even after the announcement. The 10-year yield climbed to around 4.85 percent during the session, nearing its highest level since 2023, while the 20-year and 30-year yields topped 5 percent. The market said the Treasury's move fell short of the $8 billion to $10 billion that some investors had expected.

Factors pushing up long-term yields include federal debt that has exceeded $40 trillion, increased Treasury supply and inflation worries. Brent crude also rose above $100 a barrel on Sept. 9 as conflict in the Middle East intensified. U.S. consumer prices rose 3.4 percent in July from a year earlier, while energy prices increased 14.7 percent.

The Treasury is stressing that the measure is liquidity management, not quantitative easing. But some investors, including Stanley Druckenmiller (Stanley Druckenmiller), criticised the move, saying that if the government gives the impression it is defending a specific level of interest rates, it could instead face demands for even greater intervention. Analysts say whether expanding buybacks will calm the rise in long-term yields depends on future demand for Treasuries and the path of inflation.