The US Treasury plans to expand its repo operations for the first time, aiming to purchase $4 billion to $6 billion in long-term Treasury bonds.

The U.S. Treasury Department announced that, in the first operation of its expanded repurchase program, it will purchase at least $4 billion and up to $6 billion in long-term government debt, highlighting Secretary Yellen's determination to curb the recent rise in borrowing costs. U.S. Treasuries continued their earlier decline following the announcement, suggesting that the scale of the announcement was smaller than some investors had expected. The success of the expanded purchase program remains to be seen. After last month's initial plan announcement, yields fell but subsequently rebounded. The benchmark 10-year yield reached its highest point since 2023 last week. Economist Guha, who previously worked at the Federal Reserve Bank of New York, said, "The challenge is always whether the impact of these interventions can persist absent a larger fundamental change." Additionally, the maximum scale of the repurchase operation does not mean the Treasury will necessarily purchase that amount of government debt. However, in repurchases targeting long-term nominal debt, the department tends to purchase the full amount; since the program was relaunched in 2024, it has done so in all but two of 52 such operations.