US Treasury Steps Up Bond Purchases to Ease High Borrowing Costs

On August 19, 2026, the US Treasury doubled its purchases of long-term government bonds to at least $4 billion per operation. Long-term interest rates had climbed to their highest since 2007. Rates then eased, and the dollar fell 0.84% to 98.80. Treasury Secretary Bessent approved the move because high rates raise costs for mortgages, businesses, and the government itself.