U.S. Treasury to Conduct $6 Billion Bond Buyback Immediately After Midterm Elections

The U.S. Treasury will conduct a bond buyback of up to $6 billion immediately after the midterm elections. The buyback will take place from 1:40 PM to 2:00 PM local time on the 4th, targeting long-term bonds maturing between February 15, 2037, and August 15, 2046. The maximum purchase limit is set at $6 billion based on face value, with the actual purchase amount determined by market participants' selling offers and the Treasury's price assessment. This buyback was announced ahead of the November 3 midterm elections, and the Treasury had already specified long-term bond purchases on November 4 in the quarterly buyback schedule released on September 9. The Treasury has conducted several bond purchases in October, and the buyback program is not a new policy introduced by the current administration. However, the decision to expand the bond purchase scale ahead of the midterm elections can be interpreted as an intention by the government to curb rising long-term interest rates. A decrease in long-term interest rates can lower mortgage and corporate financing costs, creating a favorable economic environment for the government.