US Treasury triples bond buyback as 10-year yield reaches reported post-2008 high

The US Treasury will buy back US$6 billion of 10- and 20-year notes in an operation three times the usual size, as officials seek to support liquidity and market functioning at the long end of the government bond curve.

The repurchase follows Treasury Secretary Scott Bessent’s 19 August pledge to at least double the size of normal buybacks. The operation is scheduled for Thursday and will run for 20 minutes, concluding at 2pm Eastern Time.

The announcement did not immediately calm the bond market. The benchmark 10-year Treasury yield rose to a reported 4.841%, described by the supplied account as its highest level since before the 2008 financial crisis.

Treasury buybacks target older, less-traded securities and are intended to smooth price movements when trading volumes thin. The larger operation reflects pressure on the long end of the curve, but the supplied material does not establish whether it will have a lasting effect on yields.

The account links the rate pressure to federal debt above US$40 trillion, tariff-related inflation concerns and geopolitical tensions involving Iran. Commercial real estate borrowing costs are partly tied to the 10-year Treasury yield, leaving markets focused on whether Thursday’s operation can influence long-term financing conditions.