US Treasury increases sizes of long-end liquidity support buybacks

The US Treasury Department has announced a significant increase in the size of its long-end liquidity support buybacks, at least doubling the program's scale. This strategic move triggered a sharp rally in the government's longest-dated bonds. The expanded buyback initiative aims to stabilize long-term bond markets, which could potentially enhance overall market liquidity and lower borrowing costs. These actions reflect a targeted effort by the US Treasury to support the stability of the bond sector.