Treasury Doubles Long‑Bond Buyback Operations to Relieve Market Strain After 30‑Year Yields Soar

Facing the highest 30‑year Treasury yields since 2007, the U.S. Treasury unveiled a surprise expansion of its long‑bond buyback program—doubling the cap to at least $4 billion per operation—to inject much‑needed liquidity and calm the bond market.

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1. The Shock: Bond Yields Surge to Multi‑Decade Peaks

On August 18, 2026, the yield on the 30‑year U.S. Treasury spiked to approximately 5.327%, marking its highest level since 2007 and a 19‑year high. The 10‑year note also hit a 19‑year peak, with yields climbing to around 4.683% amid geopolitical tensions and inflation fears, particularly driven by elevated oil prices and fiscal concerns.

2. Treasury’s Tactical Response: Doubling Buyback Caps

In response, on August 19, the Treasury announced it would double the cap on liquidity support buyback operations for longer‑dated nominal coupon securities—from $2 billion to at least $4 billion per operation. The expanded operations will target the 10‑ to 20‑year and 20‑ to 30‑year sectors and take effect beginning September 9, running through November 4. Future sizes will be addressed at the next Quarterly Refunding on November 4.