In the long-term government bond buyback operation conducted by the US Treasury, the purchase amount fell short of the cap announced in advance. This was the first operation since Treasury Secretary Bessent announced an increase in the buyback size, but the purchase amount did not reach the cap of 6 billion dollars. The Treasury bought back 5.19 billion dollars of bonds with 10 to 20 years remaining to maturity. Sell offers from investors reached 10.5 billion dollars. Even after the buyback, the US 10-year yield rose, hitting 4.95%, its highest level since 2023. The Treasury is not obligated to buy back up to the cap, but this is only the third time, including this one, that it has failed to purchase up to the cap in a buyback targeting long-term bonds, and 53 such operations have been conducted since the buyback program was reintroduced in 2024. Molly Brooks, a strategist at TD Securities, said, "This maturity range of buybacks shows that the Treasury has become more selective than usual."
Treasury's long-bond buyback fell short of its $6B cap and the 10-year yield rose to 4.95%, its highest since 2023, reflecting upward pressure on the 10Y yield.
