U.S. Treasury Set for Another Liquidity Buyback on Oct. 1 After Sept. 10 Operation

The U.S. Treasury is set for another liquidity buyback on Oct. 1.
This follows the Sept. 10 operation, when Treasury offered to buy up to $6 billion of 10- to 20-year bonds, triple the size of its previous long-dated buyback. The goal is to improve liquidity in older, harder-to-trade Treasuries after a sharp bond selloff pushed long-term yields to multi-year highs.
Stronger Treasury demand can support bond prices and potentially ease yields, which would be a positive backdrop for stocks and crypto. The buyback is supportive for market liquidity, but it is not the same as Fed QE.