US Treasury's Long-Term Bond Buyback Move
Aiming to increase market liquidity, the US Treasury will purchase billions of dollars in bonds as part of an operation planned for tomorrow.
The US Department of the Treasury announced that it will repurchase up to $6 billion in long-term bonds on September 10 to support market liquidity.
Details of the Bond Buyback Operation
In a statement made by the US Department of the Treasury, it was reported that up to $6 billion in long-term bonds will be repurchased tomorrow. It was stated that these operations are implemented to support market liquidity.
Draft Schedule and Maturities
According to the published draft schedule, the US Treasury will buy back 10- to 20-year bonds into its portfolio on September 10. Certain limits have also been set for similar operations to be conducted in the future.
Future Operation Limits
It was noted that the limits for the 10- to 20-year and 20- to 30-year bond buyback operations to be carried out on future dates will be at least $4 billion.
Past Statements and Limit Increases
In its announcement on August 19, the US Treasury had stated that it would increase limits in liquidity-supported operations covering long-term nominal coupon securities. It was noted that the current amount of at most $2 billion would be raised to at least $4 billion.
Implementation Schedule and Validity Period
It was conveyed that the limit change in question entered into force as of September 9 and will remain valid until November 4, when the current borrowing period ends.