US Treasury to keep debt auction schedule despite larger bond buybacks

The US Treasury will maintain its regular debt-auction schedule, including long-dated bonds, despite doubling the size of its buybacks, Secretary Scott Bessent told Reuters.

The Treasury has not yet purchased bonds under the larger program, which will begin September 10 for 10- and 20-year securities. Buybacks of 10- to 30-year debt will rise to at least $4 billion per operation next quarter.

The policy briefly pushed down yields on 10-year notes and 20- and 30-year bonds, offering relief as high borrowing costs increase federal debt-service expenses. Longer-dated yields later recovered much of the decline.

The Treasury has not said how it will fund the purchases. Using its account at the Federal Reserve would reduce cash reserves, while new borrowing would need to use shorter maturities to preserve the buybacks’ liquidity goal.

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