The US Treasury Department is expanding its buyback program for longer-term bonds as part of its quarterly refunding statement, seeking to improve market liquidity and manage the federal debt’s maturity profile. Reintroduced in 2024 after a two-decade hiatus, the program allows the Treasury to repurchase outstanding securities before maturity through regular auctions. For the upcoming quarter, the department has raised the maximum amount of longer-term bonds it can buy, reflecting current market conditions and investor appetite. Buybacks can support bond prices and put downward pressure on yields, particularly at the long end of the curve, while giving holders of less liquid securities an exit route. By reducing the supply of long-dated bonds, the program may also moderate upward pressure on long-term yields, with potential effects on mortgage rates, corporate borrowing costs, consumer spending and business investment. Critics argue that buybacks can distort market signals and that the government should prioritize reducing the overall debt burden. With the federal deficit still elevated, the program is presented as a pragmatic debt-management tool. Its effects on yields, liquidity and fiscal policy will remain important for market participants.