The US Treasury begins this Wednesday the bond purchase program between 10 and 30 years, coinciding with 10-year debt issuances in the United States and Germany. The minimum limit of the Treasury's repurchase operation doubled from two billion dollars to four billion dollars, equivalent to 3.4 billion euros.
The program was announced by the Treasury Secretary, Scott Bessent, on August 19, after US 30-year bonds hit 2007 highs on the 17th of the same month. This operation will remain in effect until November 4, 2026, covering the rest of the refinancing quarter.
According to Bessent, the increase in repurchase operation sizes reflects the Treasury's desire to provide greater liquidity support in long-term nominal coupon sectors, where there is strong support from market participants.
This Wednesday, Germany plans to place 5.5 billion euros in 10-year bonds, while the United States plans to issue 39 billion dollars (33.5 billion euros) over the same term. Mizuho analyst, Gomez-Liechti, stated that expectations have increased considerably since the Treasury indicated that purchases in the 10-30 year bond sector would at least double, with the market increasingly inclined towards an operation above the required minimum.
