Treasury Secretary Outlines Phased Debt Buyback Schedule to Support Long-Term Market Stability

WASHINGTON, DC — U.S. Treasury Secretary Scott Bessent provided additional operational specifics Wednesday evening regarding the federal government's expanded sovereign debt repurchase program, designed to stabilize primary dealer liquidity and mitigate yield volatility across 10-year to 30-year Treasuries.

Operational Scheduling and Buyback Execution

The Treasury's revised schedule establishes twice-weekly buyback operations starting September 9, 2026, with each individual operation capped at $4 billion. The repurchase operations will retire off-the-run benchmark bonds issued between 2018 and 2024, replacing them with standard on-the-run benchmark issuance to improve secondary market liquidity.

Treasury officials emphasized that the operations are fully funded through existing cash reserves and will not increase net federal debt issuance for the fiscal year.

Market Reaction and Borrowing Benchmarks

Financial institutions and sovereign debt traders reacted favorably, with 30-year Treasury yields easing another 4 basis points in overnight electronic trading. Major institutional bond funds noted that the predictable operation schedule will reduce hedging costs for corporate debt issuers and state municipal bond authorities.

Budget analysts highlighted that stabilizing long-duration Treasury yields directly benefits consumer credit, keeping auto loan and fixed-rate mortgage rates from reaching multi-decade highs.

Congressional Briefings and Fiscal Oversight

The Treasury Department will deliver its quarterly debt issuance report to the House Ways and Means Committee and the Senate Finance Committee during the second week of September.