Treasury Doubles Long-Term Bond Buyback Cap to $4 Billion

The Treasury will double its per-operation cap on buybacks of long-term bonds (over 15 years to maturity) from $2 billion to at least $4 billion, starting September 9, 2026. The "at least" wording leaves room to go higher. Bond desks must reprice the premium on recently issued securities and adjust hedging positions in the 20- and 30-year sectors. Primary dealers may benefit if buybacks absorb more illiquid, older issues.