US Treasury to buy up to $6bn of 20-30 year debt today
The buyback comes as the 30-year Treasury yield climbs to its highest level since 2004.
Published
Chart: TLT, daily closes since Sep 2023
The US Treasury will buy up to $6 billion of debt maturing in 20 to 30 years in a buyback operation dated September 24.
That two-day rise pushed both the 2-year and 30-year yields near multi-year highs.
Treasury Secretary Bessent has said the steepening reflects fiscal concerns and strong growth expectations, though he has not laid out how much weight each carries.
Set against that backdrop, a $6 billion buyback is a modest operation. It targets longer-dated debt at a moment when borrowing costs across the curve are stretched, which points to Treasury using the buyback to manage its refinancing calendar rather than to shift the market. The broader direction of yields is unchanged by the operation.