The US Treasury Department has announced a draft schedule for buyback operations aimed at supporting liquidity in long-term bonds. The first step in the schedule will be taken on Sept. 10.
First buyback to take place on Sept. 10
The US Treasury will buy back up to $6 billion of bonds maturing in 10 to 20 years on Sept. 10.
In subsequent operations, the buyback limit will be set at a minimum of $4 billion for bonds maturing in 10 to 20 years and 20 to 30 years.
New limit to remain in effect until Nov. 4
On Aug. 19, the department announced that the amounts in liquidity-supporting buyback operations covering long-term nominal coupon securities would be increased.
The current maximum of $2 billion per operation will be raised to at least $4 billion. The change will take effect on Sept. 9 and remain in force until Nov. 4, when the current borrowing period ends.