US stocks opened higher Tuesday after Treasury yields declined following the government’s latest bond buyback operations. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all climbed as investors responded to the Treasury Department’s purchases of its own debt in the secondary market. The Treasury announced a liquidity support buyback on August 18 as part of a program running throughout 2026. By reducing the supply of bonds available to investors, buybacks can lift prices and lower yields, making stocks comparatively more attractive. The program focuses on older off-the-run Treasury securities, which have been replaced by newer issues and generally trade with less liquidity. It excludes bills, floating-rate notes and STRIPS, and covers nominal coupon securities and Treasury Inflation-Protected Securities, or TIPS (government bonds linked to inflation). A tentative schedule released on August 5 calls for up to $38 billion in liquidity support buybacks across several maturity buckets in the third quarter of 2026, plus $25 billion for cash management in the 1-month to 2-year sector, for total quarterly capacity of $63 billion. Operations have taken place once or twice a week, with individual purchases often ranging from $2 billion to more than $15 billion, and the program has expanded in recent quarters. The approach echoes Treasury buybacks in the early 2000s, but today’s program is aimed at market functioning rather than reducing the overall debt burden. The Treasury is exchanging older, less-liquid securities for newer ones, leaving total debt outstanding roughly neutral while supporting liquidity and suppressing yields through the end of September.