The US Treasury will raise the maximum size of its liquidity-support bond buyback operations from $2 billion to at least $4 billion per operation, beginning September 9 and continuing through November 4, the remainder of the current refunding quarter. The purchases will target longer-dated nominal securities in the 10- to 20-year and 20- to 30-year maturity buckets. Treasury Secretary Scott Bessent suggested the program could expand further, saying the Treasury would actively "make a market" in the securities. Ten-year Treasury yields initially fell sharply before partially rebounding, indicating that traders viewed the move as a technical liquidity intervention rather than a structural solution for long-term rates. The announcement drew comparisons with the Bank of Japan's long-running purchases of Japanese Government Bonds, which have provided temporary relief but also contributed to distortions in price discovery. The connection has added significance as Japanese investors holding roughly $1.2 trillion in US Treasuries consider whether to sell assets to support the yen. Large-scale selling could push up US borrowing costs, while the expanded buyback program may provide a partial cushion. The Treasury says the initiative is intended to improve liquidity in thin and volatile parts of the yield curve, particularly the 20-year bond, which has often traded at a discount to nearby maturities since its reintroduction in 2020. Even at $4 billion per operation, the program remains small compared with roughly $27 trillion of outstanding marketable Treasury debt, and the initial yield decline followed by a rebound suggests investors remain unconvinced that it will materially change the path of long-term rates.